New York: Verizon Communications Inc said on Monday that it would buy Yahoo Inc’s core internet properties for $4.83 billion in cash, marking the end of the line for a storied Web pioneer and setting the stage for a big new internet push by the telecom giant.
Verizon will combine Yahoo’s search, email and messenger assets as well as advertising technology tools with its AOL unit, which it bought last year for $4.4 billion. Verizon, the No. 1 US wireless operator, has been looking to mobile video and advertising for new sources of revenue outside the oversaturated wireless market.
The deal came after activist investors led by Starboard Value LP lost faith in Yahoo chief executive officer Marissa Mayer, who was hired in 2012, and forced what became a protracted sale process.
Yahoo, founded in 1994, was a dominant player in the early days of the internet, but has long lost its leadership position in internet search and advertising to Google, Facebook and others.