Verizon Communications Inc said it would buy Yahoo Inc's core internet properties for $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 $4.4 billion, and give it access to Yahoo's ad technology tools, BrightRoll and Flurry, and assets such as search, mail and messenger.
The deal, expected to close in early 2017, marks the end of Yahoo as an operating company, leaving it with a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd and a 35.5 percent interest in Yahoo Japan Corp.
Key Points
Yahoo will continue as an independent company until the deal receives shareholder and regulatory approval.
The sale does not include Yahoo's cash, its shares in Chinese e-commerce giant Alibaba Group Holding Ltd, shares in Yahoo Japan, Yahoo's convertible notes, certain minority investments or Yahoo's non-core patents.
The Alibaba and Yahoo Japan investments are worth about $40 billion, while Yahoo had a market value of about $37.4 billion.
In premarket trading, shares of Verizon were up slightly at $56.30, while shares of Yahoo were down 1.5 percent at $38.80.
Current Affairs 25th July, 2016 Current Affairs Round Up Bullet Points, June, 2016 Current Affairs Round Up Bullet Points, May, 2016
Join The Discussion