Verizon to buy Yahoo’s core business for $4.83 billion

Verizon Communications Inc said it had agreed to buy Yahoo Inc’s core Internet business for $4.83 billion (roughly Rs. 32,500 crores) in cash, ending a lengthy sale process for the fading Web pioneer.

Buying Yahoo’s operations will boost Verizon’s AOL Internet business, which it bought last year for $4.4 billion (roughly Rs. 29,600 crores), by giving it access to Yahoo’s advertising technology tools as well as other assets such as search, mail and messenger.

The deal marks the end of Yahoo as an operating company, leaving it with a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd and a 35.5 percent interest in Yahoo Japan Corp.

“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,” Yahoo Chief Executive Marissa Mayer said in a statement on Monday.

The sale does not include Yahoo’s cash, its shares in Alibaba, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments and Yahoo’s non-core patents.

The Alibaba and Yahoo Japan investments are worth about $40 billion (roughly Rs. 2,69,160 crores), while Yahoo had a market value of about $37.4 billion (roughly Rsd. 2,51,666 crores) as of Friday’s close.

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