Verizon nears deal to acquire Yahoo

San Francisco: Verizon Communications Inc (VZ) is believed to have reached final stages of clinching deal on acquiring Yahoo (YHOO). The two companies held discussions on Friday and may announce a deal anytime. According to several published reports in the media, the transaction value is estimated to be $5 billion, however, it’s not final. Spokespersons at Verizon and Yahoo declined comment.

Yahoo shares closed up 1.4 percent to $39.38. Verizon Communications (VZ) ended up 1.3 percent to $56.10 on Friday.

The Guardian reports that Yahoo’s board began the sale process four months ago after abandoning a spin-off of its valuable stake in Chinese retailing giant Alibaba, worth $32 billion, over concern about transaction taxes. With an objective of spinning off Yahoo’s core business from that stake, the board has okayed the sale proposal at the urging of activist investors including Starboard Value.

As part of the deal in progress, Verizon will buy Yahoo’s core business including advertising, search and content such as Yahoo Finance, Yahoo Sports and Yahoo Mail. Verizon’s bid could eventually include some of Yahoo’s real estate, according to media reports.

As part of the deal in progress, Verizon will buy Yahoo’s core business including advertising, search and content such as Yahoo Finance, Yahoo Sports and Yahoo Mail. Verizon’s bid could eventually include some of Yahoo’s real estate, according to media reports. The company has sought to sell its portfolio of thousands of patents, real estate and other assets. That would leave only its Alibaba stake and perhaps its 36 percent stake in Yahoo Japan, worth about $8 billion.

In December 2015, Verizon CEO Lowell McAdam and CFO Fran Shammo said the company would look at Yahoo should it go up for sale.Verizon has been considered as favorite all along through this process. Bids have been in the range of $5 billion to $6 billion range.