Verizon and Yahoo announced Monday that Verizon would be buying Yahoo's core assets, drawing the online company's years-long fight for survival to a close.
Yahoo was the entry point to a generation of early web users, and its services still attract a billion users each month.
Verizon Communications Inc. announced plans to buy Yahoo's assets for about $4.8 Billion. The deal includes Yahoo real estate assets, while Yahoo will keep its stakes in Alibaba Group Holding Ltd. and Yahoo Japan Corp., a combined market value of $40 Billion.
Months of speculation as to the fate of the company, as well as pressure from investors, led up to the deal which will also likely end the tenure of Marissa Mayer as CEO.
Yahoo has not yet laid out plans for its remaining investments in Alibaba and Yahoo Japan.
“The deal speaks to a clear strategy shift at Verizon,” Craig Moffett, an analyst with MoffettNathanson, said in an interview with Bloomberg. “They are trying to monetize wireless in an entirely new way. Instead of charging customers for traffic, they are turning to charging advertisers for eyeballs.”
Yahoo shares gained 1.4 percent, closing at $39.38 on Friday. Shares of Verizon rose 1.3 percent to $56.10.
