Verizon has agreed to buy ailing web portal , Yahoo Inc, for $4.8 billion.The deal is expected to be announced formally on Monday before markets open ending months of uncertainty about Yahoo’s future after the company announced plans to review strategic options in February.
Verizon, whose market capitalization stands at $228 billion, emerged as the front-runner in the auction to acquire Yahoo since bidding began in April. The $4.8 billion deal is a far cry from Yahoo’s peak market valuation, which once stood in exess of $125 billion.
The transaction comes as Yahoo found itself under pressure from shareholders fed up with a downturn in the company’s revenue during the past eight years.
The deal includes Yahoo real estate assets, while some intellectual property is to be sold separately.
Yahoo will be left with its stakes in Alibaba Group Holding Ltd. and Yahoo Japan Corp., with a combined market value of about $40 billion.
The deal signals the end the reign of Yahoo Chief Executive Officer Marissa Mayer.