Verizon to buy Yahoo’s core business for US$4.83 billion
The deal leaves Yahoo with 15pc stake in Alibaba and a 35.5pc interest in Yahoo Japan Corp
Verizon Communications said on Monday it would buy Yahoo’s core internet properties for US$4.83 billion in cash to expand its digital advertising and media business, in a deal that ends a lengthy sale process for the fading Web pioneer.
The purchase of Yahoo’s operations will boost Verizon’s AOL internet business, which it bought last year for US$4.4 billion, and give it access to Yahoo’s advertising technology tools, BrightRoll and Flurry, and assets such as search, mail and messenger.
The deal, expected to close early next year, marks the end of Yahoo as an operating company, leaving it with a 15 per cent stake in Chinese e-commerce company Alibaba Group Holding and a 35.5 per cent interest in Yahoo Japan Corp.
“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,” Yahoo chief executive Marissa Mayer said in a statement on Monday.
Yahoo will continue as an independent company until the deal receives shareholder and regulatory approval, the companies said.
In a Tumblr blog post, Mayer said she planned to stay at Yahoo, but Verizon’s Marni Walden, who will head the combined company, told CNBC the new leadership team has yet to be determined.