Verizon announces $4.83bn Yahoo buy 

U.S. telco to merge Yahoo with recently-acquired AOL unit; Yahoo to retain Asian assets, change its name when deal closes.
Verizon has brokered a deal that will see it acquire Yahoo's operating business for $4.83 billion in cash, it announced early on Monday afternoon, as expected.

The U.S. telco said it will merge Yahoo with AOL – the Internet company it acquired for $4.4 billion in June last year – to create a major player in the mobile media and advertising space.
Under the terms of the deal, Verizon will take control of Yahoo's core assets including its search products, digital content brands, advertising and analytics assets.

The deal does not include Yahoo's cash, its Alibaba Group stake, its shares in Yahoo Japan, other minority investments and some non-core patents. The remainder of Yahoo will become a publicly-traded investment company and adopt a new name when the deal closes, but it has yet to disclose what that name will be.

Subject to satisfaction of the usual closing conditions, and gaining the approval of Yahoo shareholders and regulatory approvals, Verizon expects to complete the deal in the first quarter of 2017.

"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," said Yahoo chief executive Marissa Mayer, in a statement. The companies made no comment on Mayer's future once the deal closes, although it seems unlikely she will make the move to Verizon.

Indeed, Verizon said that Yahoo will be integrated with AOL under the control of Marni Walden, president of its product innovation and new business organisation.
"Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers," said Verizon CEO Lowell McAdam
"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," he said.

"This transaction is about unleashing Yahoo’s full potential, building upon our collective synergies, and strengthening and accelerating that growth," added AOL chief executive Tim Armstrong. "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."

Together, AOL and Yahoo claim more than 25 brands, including premium content brands in finance, news and sport, and, according to Verizon, "one of the most popular email services globally with approximately 225 million monthly active users."
According to its own metrics, Yahoo brings a global audience of 1 billion-plus monthly active users, including 600 million on mobile devices, through its search, communications and content assets.

Source: Total Telecom