Verizon Communications Inc (VZ.N) announced an agreement on Monday to buy Yahoo Inc (YHOO.O) core business for $4.8 billion. The deal will end months of uncertainty about Yahoo’s future after the company announced plans to review strategic alternatives in February.
The transaction will boost Verizon’s AOL internet business, which the company acquired last year for $4.4 billion, by giving it access to Yahoo’s advertising technology tools, as well as other assets such as search, mail, messenger and real estate.
It will also mark the end of Yahoo as an operating company, leaving it only as the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba Group Holding Ltd (BABA.N).
Started in 1994 by Stanford graduate students Jerry Yang and David Filo, Yahoo in its early years was the destination of choice for many making their first forays onto the World Wide Web.
“Yahoo and AOL popularized the internet, email, search and real-time media,” Marissa Mayer said in the statement. “It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile. We have a terrific, loyal, experienced and quality team, and I couldn’t be prouder of our achievements to date.”
PS: This story has been updated.