In what can be described as one of the biggest deals of the year, Verizon Communications on Monday announced its plans to buy Internet pioneer yahoo Inc.’s web assets in a $4.83 Billion deal.
“Verizon Communications Inc. and Yahoo! Inc. today announce they have entered into a definitive agreement under which Verizon will acquire Yahoo’s operating business for approximately $4.83 billion in cash,” Yahoo wrote in a news release today.
“Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL. The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social,” CEO of Yahoo, Marissa Mayer said in a statement.
The deal that is subject to customary closing conditions, including approval by Yahoo’s shareholders, is expected to close in early 2017. Until the closing, Yahoo will continue to operate independently, offering and improving its own products and services for users, advertisers, developers and partners.
According to reports, The sale does not include Yahoo’s cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents (called the Excalibur portfolio).
“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.
These assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company.