Verizon has agreed to buy Yahoo’s core internet operations for US$4.83 billion (€4.4 billion).
Yahoo will be integrated with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organisation at Verizon.
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. These assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company.
A New York Times report said that these remaining investments are worth around US$41 billion.
US mobile operator Verizon will reportedly combine Yahoo’s operations with AOL, which it acquired last year.
Yahoo CEO Marissa Mayer, who joined the firm from Google in 2012, is not expected to move to Verizon as part of the deal.
The news follows reports last month that claimed Verizon planned to submit a US$3 billion second-round bid for Yahoo’s core web assets.
“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 Lowell McAdam, Verizon chairman and CEO.
“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,” said Mayer.