Verizon Communications Inc, on Monday, said it had agreed to buy Yahoo Inc’s core internet business for $4.83 billion in cash.
Marissa Mayer, Yahoo Chief Executive, said this in a statement.
“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.
“The deal marks the end of Yahoo as an operating company.’’
It would now be left with a 15 per cent stake in Chinese e-commerce company Alibaba Group Holding Ltd, and a 35.5 per cent interest in Yahoo Japan Corp.
The sale does not, however, include Yahoo’s cash, its shares in Alibaba, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents.
The Alibaba and Yahoo Japan investments are worth about 40 billion dollars, while Yahoo had a market value of about 37.4 billion dollars as of Friday’s close.
Buying Yahoo’s operations would boost Verizon’s AOL internet business by giving it access to Yahoo’s advertising technology tools as well as other assets such as search, mail and messenger.
