Verizon Communications Inc.on Monday said it would buy Yahoo Inc.’s Web assets for $4.83 billion in cash, ending a drawn-out process for the beleaguered internet company.
The price, which includes Yahoo’s core internet business and some real estate, caps a remarkable fall for the Silicon Valley web pioneer that had a market capitalization of more than $125 billion at the height of the dot-com boom in early 2000.
For New York-based Verizon, the deal adds another piece to the digital media and advertising empire it is trying to build.
The companies said the purchase is subject to regulatory and other consents, including approval by Yahoo’s shareholders. Until the closing, which is expected in early 2017, the companies said Yahoo will continue to operate independently.
The sale doesn’t include, among other things, Yahoo’s cash, its shares in Alibaba Group Holdings Ltd, its shares in Yahoo Japan, and Yahoo’s noncore patents, called the Excalibur portfolio. These assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly traded investment company.
Yahoo intends to return substantially all of its net cash to shareholders under a plan that it will disclose at a later time.
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