After speculation and rumours, the deal has been done. Verizon has stumped up $4.83 billion in cash for Yahoo's operating business, including search, advertising and content.
The acquisition adds an extra one billion monthly active users to Verizon's customer base, and the deal comes just over a year after the company acquired AOL. Verizon's CEO says the company is in a 'highly competitive position' and the deal will 'help accelerate our revenue stream in digital advertising'.
Verizon now has a huge portfolio of brands, spanning everything from publishing and advertising, to search and news. The deal is expected to complete by the end of Q1 2017, and until that time Yahoo will continue to operate as an independent.
In a statement, Verizon explains what is not included in the deal. "The sale does not include Yahoo's cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, Yahoo's convertible notes, certain minority investments, and Yahoo's non-core patents (called the Excalibur portfolio). These assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company. Yahoo will provide additional information about the investment company at a future date".
Marissa Mayer, the CEO of Yahoo who has faced a great deal of criticism 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.