American telecommunications corporation Verizon Communications Inc. will announce today its plans to acquire the main business of Yahoo! Inc for 4.8 bln. dollars – a step that could lead to the end of the battle for the web veteran.
News of the transaction are expected before the opening of stock exchanges in the US, told Bloomberg a source familiar with the situation who asked for anonymity.
The deal includes Yahoo’s real estate assets, as part of the intellectual property must be sold separately, the source said. Yahoo will be sold with its shares in Alibaba Group Holding Ltd. and Yahoo Japan Corp., with a combined market value of about 40 billion dollars.
The transaction will end the months-long exploration of Yahoo for strategic alternatives amid pressure from activist investor Starboard Value LP. The deal will add the Web company and its millions of daily active users at the media division of Verizon, but is also likely to end management of Yahoo’s CEO Marissa Mayer, who tried but failed to restore Yahoo as an independent company.
Verizon spokesman Bob Varettoni and Yahoo spokeswoman Rebecca Neufeld declined to comment. Yahoo has not stated what is it going to do with its investments in Alibaba and Yahoo Japan.
Verizon plans to keep the brand Yahoo, says a source familiar with the plans quoted by WSJ.