Verizon Communications and Yahoo today announced they have entered into a definitive agreement under which Verizon will acquire Yahoo’s operating business for approximately $4.83 billion in cash. This excludes Yahoo’s cash, its shares in Alibaba Group Holdings and Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents.
Yahoo will be integrated with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organization at Verizon.
The deal is expected to close in Q1 of 2017 after it is approved by Yahoo’s shareholders and other regulatory approvals. Until the closing, Yahoo will continue to operate independently.
Commenting on the acquisition, Lowell McAdam, Verizon Chairman and CEO, said:
Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.
Marissa Mayer, CEO of Yahoo, said:
Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL. 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. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social.