One year after buying AOL for $4.4 billion, Verizon has announced that it’s acquiring another major technology company.
Verizon has agreed to acquire Yahoo for $4.83 billion in cash. It’s subject to customary closing conditions, approval from Yahoo shareholders, and regulatory approvals, which means that the deal is expected to officially close in Q1 2017.
With this deal, Verizon will be acquiring Yahoo’s ad tools as well as its search, mail, and messenger assets and some real estate holdings. Verizon won’t be getting Yahoo’s cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, Yahoo’s non-core patents, and a few other pieces, which will continue to be held by Yahoo and will change its name after this Verizon deal closes, becoming its own publicly traded company.
Verizon EVP Marni Walden will oversee the merging of AOL and Yahoo once the deal is complete. It’s unclear what will come of Yahoo CEO Marissa Mayer, but she says that she plans to stay with Yahoo as its integrated into Verizon. “For me personally, I’m planning to stay,” Mayer wrote in the Yahoo Tumblr. “I love Yahoo, and I believe in all of you. It’s important for me to see Yahoo into its next chapter.”