Struggling tech giant will be acquired by Verizon for $4.83 billion

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July 25, 2016 12:45 PM

Yahoo has been looking for a buyer for the past few years as it has continually continued to struggle to be profitable. There has been various bids and it seems Verizon has emerged winner.

Yahoo CEO, Marissa Meyer.

New reports making the rounds say that

Verizon will be acquiring Yahoo's search and advertising business for $4.8 billion. Wall street pundits had expected Yahoo's earnings call on Thursday last week to be the company's final one as a complete entity.

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In recent years, Yahoo has struggled to be profitable. During its earnings call last week, it reported a $440 million loss in the second quarter. Tumblr, which Yahoo acquired a few years ago for about $2 billion has also struggled to make money.

The price for the deal is way below the $125 million which was Yahoo market capitalization at the height of the dot com boom. "We expect any offer in the range of $5-plus billion should be accepted by the Yahoo board to bring the process to a close," wrote BGC analyst, Colin Gillis, recently.

Verizon also owns AOL and when the deals is final, Yahoo is expected to be merged with AOL to create a company that should be able to take on bigger companies like Google and Facebook.

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