Verizon in $4.8 billion swoop for Yahoo

US telecoms giant Verizon yesterday said it will a create a mobile media giant with one billion users after snapping up Yahoo for $4.83 billion (about £3.7bn).

Verizon said the deal will create a combined company with more than 25 brands, which will be primed for “continued investment and growth”.

However, the sale will not include Yahoo’s cash, its shares in Alibaba Group Holdings and its shares in Yahoo Japan, which will continue to be held by Yahoo under a publicly traded investment company.

Marissa Mayer, chief executive of Yahoo, said: “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL [now a Verizon subsidiary].

“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.

“This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social.”

Yahoo has come under pressure from shareholders angry with a downturn in the company’s performance over the past eight years as it lost out to the likes of Google and Facebook. Last year, Yahoo booked a $4.4 billion (£3.4bn) loss.

Verizon said the tie-up will still need to win the approval of Yahoo’s shareholders and get the green light from regulators.

It expects the takeover to be complete in the first quarter of next year. 0 Marissa Mayer said deal would offer opportunities