Ailing Yahoo is selling of its operating business for about $4.8 billion to Verizon Communications, in a cash deal that will reduce the storied tech firm to mainly holding its cash, stakes in Alibaba and Yahoo Japan and non-core patents.
For Verizon, the acquisition will help it gain Yahoo’s 1 billion monthly active users, its internet properties and key applications like search and email, and its advertising systems. Verizon is not unfamiliar to the acquisition and integration of web companies after its 2015 acquisition of AOL for $4.4 billion, when it acquired similar assets.
The transaction is expected to be completed by the first quarter of next year, subject to regulatory approvals, ending a long-drawn out bidding process for the company. After the transaction is closed, Yahoo will be integrated with AOL under Marni Walden, its executive vice president and president of the Product Innovation and New Businesses organization at Verizon, the communications company said Monday.