Verizon to acquire Yahoo's internet bsuiness for $4.8 billion

U.S based telecom firm Verizon Communications and internet firm yahoo announced they have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash.

Under the deal, Verizon will get Yahoo’s online assets including search, news, finance, sports, video, email and the Tumblr social network along with its ad technology. The deal excludes Yahoo's stake in Alibaba Group Holding and Yahoo Japan, Yahoo's cash, Yahoo's convertible notes, certain minority investments and Yahoo's intellectual property what it calls non-core patents. These are worth $40 billion dollars alone.

Yahoo will be combined with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organization at Verizon. Verizon hopes this will help  accelerate it's revenue stream in digital advertising, and compete with Google and Facebook.

The deal is expected to close in Q1 2017, after getting approval from Yahoo's shareholders and other regulatory approvals. Until the closing, Yahoo will continue to operate independently.

Commenting on the acquisition, Lowell McAdam, Verizon Chairman and CEO, said: "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."

Marissa Mayer, chief executive of Yahoo, said: "Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL."

Source | Via