"Yahoo sets sale to Verizon"
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Yahoo sets sale to Verizon
Yahoo is getting purchased by Verizon, it's official.
After a lot of speculation, Yahoo has a buyer.
The largest wireless carrier in the US, Verizon, will pay $4.83 billion in cash to pick up Yahoo's core Internet business.
The deal must pass through the standard closure and requirements like getting approval by Yahoo shareholders and regulatory agencies.
If everything goes as planned, Verizon says Yahoo will be integrated with AOL.
Marni Walden, EVP and President of Product Innovation and New Businesses, will lead the combined unit.
The acquisition is expected to be complete in the first quarter of 2017.
So what is Verizon buying exactly?
The company is not buying all of Yahoo, it's buying Yahoo's internet business.
That includes Yahoo Mail, Finance, Sports, and News.
Verizon also will get its hands on Yahoo's advertising tech.
Putting together Yahoo, with Verizon's other holdings, would position the company as a third alternative for digital advertising, with Google and Facebook being the leaders right now Verizon will not be purchasing Yahoo's equity in Chinese e-commerce like Alibaba.
Yahoo owns a 15% stake in Alibaba, valued at about $31 billion.
Verizon will also not acquire Yahoo's 35.5% interest in Yahoo Japan, worth approximately $8 billion.
What's left of Yahoo will continue to own those interests But that company will change its name when the Verizon deal goes through.
What about the that head yahoo, Marissa Mayer?
Well she left Google to become CEO of Yahoo in 2012.
She published an email that she sent out company wide.
In it, Mayer says she is planning to stay.
She says she loves Yahoo.
And believes in its employees.
That's it for this Tech News Update.
I'm [UNKNOWN] and you can stay on top of the biggest stories at CNet.com/update.
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