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Verizon considers $3 billion bid for Yahoo

According to an anonymous source, Verizon is preparing a $3 billion bid for Yahoo which will include its search engine, Yahoo mail and Yahoo news services.

If the deal goes through, Verizon will also receive any of the other web products and services that the company owns, including Yahoo Answers and Yahoo Finance. The telecom acquiring another internet company from the dotcom era falls in line with its recent purchase of AOL last year. The first reports that Verizon was considering putting in a bid for Yahoo came in April and it was rumoured that the company wanted AOL's CEO Tim Armstrong to replace Marissa Mayer as the company's CEO.

Although the Yahoo name does not hold the same weight that it did during the dotcom boom, its website still receives a great deal of traffic. The third-party analytics site, Similar Web showed that in May 2016 it had 6.5 billion page views and was ranked as the fifth most visited site globally.

Yahoo debuted in 1994 and the search engine quickly became one of the first big Internet companies thanks in large part to its online advertising business. However, it was unable to adapt to the changes that occurred to the web after the dotcom crash and was never able to regain its former significance. Yahoo's CEO Marissa Mayer even admitted that the company had a $4.4 billion loss in Q4 2015. If a takeover deal is made, it is widely expected that Mayer will resign as CEO and receive her severance package of $110 million.

Several companies besides Verizon including Time Inc. and Google have also reportedly shown interest in making a bid for Yahoo, giving Verizon some serious competition

Image Credit: Shutterstock / Ken Wolter

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.