In 2019 beginning, Verizon communication, one of the largest communication technology firm was searching buyers for one of its leading internet financial news hub ‘Yahoo Finance,’ three people familiar with the news informed Reuters over this week.
However, the communication company managed to end its search recently, and refused to reveal the buyers’ names as the matter was private.
On Thursday, Verizon media firm made a statement and said,
“We do not comment on rumors and speculation. Yahoo Finance is integral to Verizon Media’s growth strategy. We continue to invest in the expansion of live programming, audio programming and the recently launched Yahoo Finance Premium product.”
Yahoo has become an integral part of the Verizon Media communication firm and also the main focus of its plans. Verizon plans to save Yahoo Finance, considered as one of the dominant set of internet assets which has been shrinking from 2000.
The two biggest brands under Verizon Media are Yahoo and AOL. Verizon Media also acquires Techcrunch and Engadget – the technologies based news websites and HuffPost-news publication, it also acquires Tumblr – a social media website.
US-based wireless service carrier never introduced a formal sales process but secretly emphasized willingness in Yahoo Finance despite restructuring its media section. Earlier the company was named as Oath and recently changed its name to Verizon Media.
Yahoo Finance was once considered as the most visited website by users across its business and finance news section in May 2019. Yahoo Finance attracted more than 100 million users across the world in 2019 and a strong competitor to its rivals. It outperformed leading financial news and business websites such as Forbes and CNBC, comScore- a media analytics firm revealed the information.
Despite the tremendous loss of value and usage of Verizon’s businesses, Yahoo Finance still holds a powerful position in the market.
The sources say, Verizon received spontaneous interest in Yahoo Finance business but failed to consider the discussions.
Earlier in 2015 and 2017, Verizon Media invested around $9.2 billion to acquire Yahoo and AOL. Verizon Media faced difficulties with decreasing usage and revenue. Back in 201 Verizon net book value of its media assets was $4.6 billion.
Yahoo was founded in 1995 and was the beginning of the internet world. The company’s value during its highest level in the 1990s was estimated to more than $125 billion.
AOL revealed deal to purchase Time Warner by paying $165 billion in 2000 and the combined value of ALO after the announced was estimated to more than $340 billion.
It’s not clear how much Verizon was planning to get through Yahoo Finance sale. However, other publication deals might offer a standard for evaluation.
In June 2019, Yahoo Finance introduced a premium subscription to customers that will provide enhanced portfolio features, investment plans, and research report. Customers can avail this service by paying $50 every month.
An analyst, Walt Piecyk mentioned, Verizon is dedicating more towards its wireless business and less towards is media section ever since Verizon appointed new CEO in 2018, Hans Vestberg.
“Whatever Verizon is able to sell (Yahoo Finance) for will not move the needle for the business.”