Verizon Ends Yahoo Independence With $4.83 Billion Deal
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Verizon Communications has agreed to buy Yahoo’s web assets for $4.83 billion, ending the company’s two-decade run as an independent business that took it from Stanford University startup at the dawn of the internet age to also-ran behind nimbler online rivals such as Google and Facebook.
Verizon will pay cash in a deal that includes Yahoo real estate, but excludes some intellectual property, which will be sold separately. Yahoo will be left with its stakes in Alibaba Group Holding Ltd. and Yahoo Japan Corp., with a combined market value of about $40 billion.
The telecommunications company will add Yahoo web services that still draw 1 billion monthly users, including mail, news and sports content and financial tools, gaining share in the $187 billion digital-advertising market — though it will nevertheless be a distant third behind Google and Facebook. Verizon, the largest U.S. wireless carrier, also gets smaller but faster-growing assets including mobile applications and advertising technology for video and handheld devices.
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