Verizon in $4.8 Billion Yahoo Deal

BASKING RIDGE/SUNNYVALE: Verizon is acquiring Yahoo’s operating business for $4.83 billion in cash and is set to integrate the venture with AOL.

The transaction does not include Yahoo’s cash, interests in Alibaba Group Holdings and Yahoo Japan, convertible notes, certain minority investments and non-core patents (called the Excalibur portfolio).

Yahoo has more than 1 billion monthly active users for its search, communications and digital content products.

Announcing the acquisition today, Lowell McAdam, Verizon’s chairman and CEO, noted: “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.”

Marissa Mayer, CEO of Yahoo, noted: “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL. 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.”

She added, “Yahoo and AOL popularized the internet, email, search and real-time media. It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile. We have a terrific, loyal, experienced and quality team, and I couldn’t be prouder of our achievements to date, including building our new lines of business to $1.6 billion in GAAP revenue in 2015. I’m excited to extend our momentum through this transaction.”

Verizon is integrating Yahoo with AOL under Marni Walden, executive VP and president of the product innovation and new businesses organization at Verizon.