Verizon Explores Lower Price or Even Exit from Yahoo Deal
Yahoo controls 8% of search traffic and costs $4bn. Google controls 64% of search traffic and costs $558bn. That's a 17-fold difference in the price for 1% of the traffic. Even more if you take US search traffic only (to exclude Yahoo Japan).<p>Verizon can get rid of the costly parts of Yahoo (mostly its media business) and have its own small Google to make cash. That was $1.8bn per year in 2015, while Yahoo's overall revenue stands at $3.9bn (Asia excluded). So Verizon buys the company at 1x revenue.<p>Who would quit such a deal?