Verizon, an American broadband telecommunications company, has announced it is to acquire Yahoo, an American multinational technology company globally known for its Web portal, search engine Yahoo! Search, et al, for US$4.83 billion.
Both companies have entered into a definitive agreement to that effect and will see Verizon acquire Yahoo’s operating business  for approximately $4.83 billion in cash.
“…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,” said Lowell McAdam, Verizon Chairman and CEO.
The acquisition will see Yahoo merged into AOL, a media technology company and subsidiary of Verizon. The merger will create one of the largest portfolios of owned and partnered global brands with extensive distribution capabilities.
Combined, AOL and Yahoo will have more than 25 brands in its portfolio for continued investment and growth.
“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,” said Tim Armstrong, CEO of AOL.
He added, “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.”
The sale is still subject to customary closing adjustments, approval by Yahoo’s shareholders, and regulatory approvals, and is expected to close in Q1 of 2017.
Before the deal closes next year, Yahoo will continue to operate independently, offering and improving its own products and services for users, advertisers, developers and partners.
 The acquisition 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).