Verizon Communications Inc (VZ.N) said Monday it would buy Yahoo Inc’s (YHOO.O) core internet properties for $4.83 billion in cash to expand its digital advertising and media business.
The price tag, which includes Yahoo’s core internet business and some real estate, is a remarkable fall for the Silicon Valley web pioneer that once had a market capitalization of more than $125 billion at the height of the dot-com boom.
The ownership of both Yahoo and AOL will give Verizon control of the third and sixth most-popular web properties in the U.S.
The deal will end a months-long bidding process for Yahoo, which began earlier this year when Chief Executive Officer Marissa Mayer — after keeping investors at bay for years — said the company would explore strategic alternatives, including selling its main internet operations.
The deal is expected to close in 2017’s first quarter.