July 26, 2016 0 Comments
Verizon Communications has agreed to acquire Yahoo for $4.8 billion. The deal is said to include Yahoo’s internet business and some real estate. The acquisition marks the incredible fall of one of the Internet’s most iconic companies that once had a market capitalization of more than $125 billion. Marissa Mayer is expected to stay following the acquisition, though it is unclear at this stage if she will remain as CEO. For Verizon, Yahoo is another addition to its growing digital media business that now includes TechCrunch, The Huffington Post, Moviefone, Weblogs, Inc., among others.
January 23, 2015 0 Comments
From a tiny startup founded by Jack Ma in his apartment in Hangzhou, China in 1999, Alibaba is now one of the biggest B2B ecommerce companies in the world. Inspired by the story of “Ali Baba and the Forty Thieves,” Jack Ma chose the name Alibaba to bring to mind the famous line “Open sesame,” an incantation that grants exclusive access to treasures. The Alibaba platform aims to open a doorway of fortune for small businesses worldwide. Due to its dominance in China’s internet and logistics space, with over 600 million subscribers and nearly $250 billion of annual transactions, it’s no surprise that Alibaba quickly rose to become one of the world’s biggest businesses. In September 2014, the company smashed records with the largest public offering in US history. Alibaba’s IPO attracted $21.8 billion, surpassing Facebook’s $16 billion in 2012. So how did Alibaba achieve this success? According to Forbes.com, Alibaba partly owes its success to Yahoo’s former CEO Jerry Yang, who invested $1 billion in the company in 2005 in exchange for 40% stake. Yahoo’s massive investment gave Alibaba the resources to boost its presence online. Included in the deal was Yahoo’s consumer marketing expertise and IP valued in the millions. Yahoo today, in exchange, enjoyed a windfall netting at tens of billions of dollars.
November 12, 2014 0 Comments
“Programmatic” has been a buzzword in the digital and media advertising industry over the past two years but very few people understand what it really means. Programmatic ad buying simply refers to the use of software and algorithms to buy digital ads, as opposed to face-to-face negotiations, RFPs, and insertion orders. According to research company IDC, the spend on real-time display advertising is expected to increase at a 59% annual growth rate through 2016, making it one of the fastest growing segments in digital advertising. This is precisely why giant tech firms such as AOL, Google and Yahoo are investing more aggressively in programmatic ad technology. Last year, AOL video advertising platform Adap.tv in a deal that was worth a total of $405M. A few months ago, Google launched its “premium video exchange.” And today, Yahoo announced that it’s acquiring BrightRoll, a San Francisco-based video tech company, for $640M in cash.
You can read about the BrightRoll deal here.
September 22, 2014 0 Comments
Last Friday, Alibaba, the Chinese ecommerce giant, closed on the New York Stock Exchange at $93.89 or 38% percent higher from its IPO price. Alibaba raised a record-breaking $21.8 billion and the company’s valuation closed at $237.7 billion. Yahoo, which sold more than 120 million of its 524 million shares, made $8.27 billion and still has remaining stake in the company valued at around $38 billion. So how did Yahoo’s shares dip 2.7% during Alibaba’s first trading day? Analysts are suggesting that investors previously bought Yahoo shares as a way to own a piece of Alibaba. Yahoo was always seen as a temporary stock for many of these investors as they waited for the sought-after Alibaba IPO. Now that Alibaba is available to investors, the market in particular those Alibaba investors, have begun reviewing Yahoo’s core business. Yahoo has been struggling for years, and if its revenue growth is not rectified soon, the value of its core business may sink even further.
© 2017 Online Agility Investments, Acquisitions and Venture Capital Database | Internet DealBook. All Rights Reserved.