Verizon buys Yahoo's core business for Rs 32,000 crore

Verizon communication said it has finalised a deal to buy Yahoo's core business operations. The deal is valued at approximately $4.83 billion or Rs 32, 508 crores.  Until closing, Yahoo will continue to operate independently

Yahoo intends to return substantially all of its net cash to shareholders.  Verizon will generally issue cash-settled Verizon RSUs for Yahoo RSUs that are outstanding at close Goldman, Sachs & Co., J.P. Morgan Securities LLC and PJT Partners are acting as financial advisors to Yahoo board and its strategic review committee

Sale does not include Yahoo's cash, Alibaba shares, Yahoo Japan shares, Yahoo's convertible notes, certain minority investments, non-core patents  Yahoo's Alibaba, Yahoo Japan stakes, non-core patents will continue to be held by Yahoo which will change its name and become a publicly traded investment company. 

 AOL's Tim Armstrong says , "combining Verizon, AOL and Yahoo will create a new powerful competitive rival in mobile media"  Yahoo will be integrated with AOL under Marni Walden, EVP and President of product innovation and new businesses organization at Verizon. The deal is expected to be finalised by Q1 of 2017.   Combined, AOL and Yahoo will have more than 25 brands in its portfolio. 

Marissa Meyer is not expected to join Verizon, but is due to receive severance package worth $57 million. Founded in 1994, Yahoo was one of the early pioneers of  the internet but gradually lost out to younger counterparts like Google and Facebook. Verizon is one of the largest US telcommunication company which acquired long-time Yahoo competitor AOL last year. 

With Reuters inputs