Verizon Confirms Plans to Acquire Yahoo's Internet Business for $4.83B in cash

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Verizon today  announced plans to acquire Yahoo Intenet business for $4.83 billion in cash, confirming rumours that have been swirling for a number of weeks now.

 Verizon owned AOL CEO Armstrong said, “We have enormous respect for what Yahoo has accomplished: this transaction is about unleashing Yahoo’s full potential, building upon our collective synergies, and strengthening and accelerating that growth. Combining Verizon, AOL and Yahoo will create a new powerful competitive rival in mobile media, and an open, scaled alternative offering for advertisers and publishers.”

Verizon CEO Lowell Adam 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.”

CEO of Yahoo Marissa Mayer 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.”

This includes Yahoo Finance, News and Sports, Yahoo Messenger and Yahoo Mail, Yahoo Search, Tumblr, Flickr, and a variety of smaller properties.

Yahoo will retain its stake in Chinese internet giant Alibaba and Yahoo Japan, which have a combined value of over $40 billion. CEO Marissa Mayer isn't likely to join Verizon, but she will receive a severance package valued at $57 million.
source: Verizon