In one of the biggest upcoming deals Verizon Communications Inc said on Monday that it would buy Yahoo Inc’s core internet properties for $4.83 billion. Verizon aims to expand its digital advertising and media business while this deal will end the tragic time that the fading web pioneer Yahoo is going through.
This deal and purchase of Yahoo’s operations will boost Verizon’s AOL internet business, which it bought last year for $4.4 billion. In addition to that, there will a technological import and this takeover will give Verizon access to Yahoo’s ad technology tools, BrightRoll and Flurry, and assets such as search, mail and messenger.
The deal which is expected to close in early 2017 will mark the end of Yahoo as an operating company. Post this deal, Yahoo will be left with a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd and a 35.5 percent 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.
It is important to understand that the sale will not include Yahoo’s cash, its shares in Chinese e-commerce giant Alibaba Group Holding Ltd, shares in Yahoo Japan, Yahoo’s convertible notes, and certain minority investments or Yahoo’s non-core patents.