Seven: “Business as usual” as Verizon buys Yahoo

US telco giant Verizon Communications Inc is acquiring Yahoo for $US4.83b, a year after it bought AOL for $US4.4b.

Yahoo will be integrated with AOL under the Product Innovation and New Businesses organisation at Verizon, according to a statement by Verizon.

“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,” said Verizon Chairman and CEO Lowell McAdam.

Seven West Media said it had various options under its Yahoo7 joint venture agreement.

“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,” it said in a statement.

“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 was previously partners with AOL before partnering with Yahoo in 2006.

“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,” it continued.

“Seven West Media will update the market when it makes relevant decisions concerning this matter.”