Verizon Communications and Yahoo! Inc. have announced they have entered into an agreement under which Verizon will acquire Yahoo’s operating business for approximately US$4.83 billion in cash, subject to customary closing adjustments.
Lowell McAdam, Verizon Chairman and CEO, said:
“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”
Regarding Seven’s partnership with Yahoo in Australia, Seven released this statement:
Once the change of control is close to being effectuated with the completion of the proposed transaction (estimated Q1 2017), Seven West Media has various options under the Yahoo7 joint venture agreement and documentation.
Seven West Media will have an opportunity, in the period between being formally notified of a transaction and final completion, to consider which options it selects or a combination as may be negotiated with the new owners of Yahoo, Inc that creates the most value for Seven West Media shareholders.
Until completion of any change of control of Yahoo, Inc, which Seven West Media understands may take six to nine months in the nature of large and complex transactions, it is business as usual at Yahoo7 here in Australia and New Zealand.
Seven West Media looks forward to discussing with Verizon Communications the company’s future plans for Yahoo, Inc in Australia and any impact these may have on Yahoo7 in Australia and New Zealand. Seven West Media has a number of positive options that will define its future development and success in digital media, building on its already highly successful development over the past few years.