Yahoo shareholders have officially approved the Verizon takeover for $4 Billion. The deal is expected to close on Tuesday, and is certainly a sore topic, as this is just one of many instances where Yahoo has overestimated themselves and underestimated the competition.
In 1998 Yahoo refused to buy Google for a deal valued at only $1 Million. Skip ahead 4 years to 2002, when Yahoo realizes their terrible decision and decides to offer Google $3 Billion, Google counters their offer at $5 Billion – Yahoo declines. (Google is now valued at $530 Billion)
2008 brought Yahoo an unbelievable offer from the technology giant Microsoft for a $45 Billion purchase price – Yahoo declines claiming it “undervalues” the company. Now only 9 years later, they agree to sell to Verizon for $4.48 Billion, a mere 1/10 of the price offered less than 10 years ago.
Verizon plans to combine AOL and Yahoo into one company named “Oath”. The merger is expected to leave more than 2,000 people unemployed, including Yahoo’s CEO Marissa Mayer; however, she will receive a $23 million severance package, as well as retain nearly $200 million worth of company stock.