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NEW YORK, July 25 (Xinhua) -- U.S. telecom carrier Verizon Communications announced Monday that it will acquire U.S. technology company Yahoo's operating business for approximately 4.83 billion U.S. dollars in cash.
Verizon's acquisition of Yahoo's operating business, which follows its purchase of U.S. mass media corporation AOL in May 2015, shows the company sees online content and advertising as primary drivers of growth in the future.
Yahoo will be integrated with AOL under the Product Innovation and New Businesses organization at Verizon, according to a statement by Verizon on Monday.
"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," said Verizon Chairman and CEO Lowell McAdam on Monday.
Yahoo's key assets include content brands in major categories including finance, news and sports, as well as the email services with about 225 million monthly active users, said the statement.
The deal is subject to customary closing conditions, approval by Yahoo's shareholders, and regulatory approvals, and is expected to close in the first quarter next year.
Moreover, the sale does not include Yahoo's cash, its shares in Alibaba Group Holdings, Yahoo Japan and so on. These assets will continue to be held by Yahoo, which will change its name at closing and become a publicly traded investment company, the statement said.
Shortly after the opening bell, Verizon's shares fell 0.52 percent at 55.81 dollars, while Yahoo inched down 1.68 percent at 38.72 dollars.
