Verizon communications has confirmed that it is acquiring core business of Yahoo for approximately $4.83 billion in cash.
Yahoo will be integrated with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organization at Verizon.
Yahoo is having a global audience of more than 1 billion monthly active users — including 600 million monthly active mobile users through its search, communications and digital content products. Yahoo also connects advertisers with target audiences through a streamlined advertising technology stack that combines the power of their data, content and technology.
Verizon Hopes To Grow Its New Media Empire using yahoo’s mobile users.
Verizon is the No. 1 U.S. wireless operator. According to reuters report, verizon has in recent years looked to mobile video and advertising for new sources of revenue in an oversaturated wireless market.
Verizon could combine data from AOL and Yahoo users in addition to its more than 100 million wireless customers to create data to help advertisers specifically target users based on online behavior and preferences.
Yahoo will continue as an independent company until the deal receives shareholder and regulatory approvals
The sale does not include Yahoo’s cash, its shares in Chinese e-commerce giant Alibaba , shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments or Yahoo’s non-core patents.
