Telecoms giant snaps up Yahoo for £3.7bn
US telecoms firm Verizon has said it will create a mobile media giant after snapping up Yahoo for $4.83bn (£3.7bn).
Verizon said the deal will create a combined company with one billion users and more than 25 brands which will be primed for "continued investment and growth".
The crux of the move will see Verizon merge Yahoo with AOL, which it bought last year for $4.4bn (£3.4bn). The deal will include Yahoo's email service and news, finance and sports websites, photo storage site Flickr and its advertising tools.
However, Yahoo's cash, its shares in Alibaba Group Holdings and Yahoo Japan, plus a portfolio of patents, will continue to be held by Yahoo, but it will change its name and begin trading as an investment company.
Lowell McAdam, Verizon's chairman and chief executive, said: "Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. 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."
Verizon said the takeover still needs the approval of Yahoo's shareholders and the green light from regulators. It expects the deal to be completed in the first quarter of next year.
Marissa Mayer, chief executive of Yahoo, said: "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."