Verizon to buy web pioneer Yahoo’s core business for $4.83 billion

Buying Yahoo’s operations will boost Verizon’s AOL internet business, which it bought last year for $4.4 billion.

Verizon Communications Inc said it had agreed to buy Yahoo Inc’s core internet business for $4.83 billion in cash, ending a lengthy sale process for the fading Web pioneer.

A combination photo shows Yahoo logo in Rolle, Switzerland (top) in 2012 and a Verizon sign at a retail store in San Diego.

Buying Yahoo’s operations will boost Verizon’s AOL internet business, which it bought last year for $4.4 billion, by giving it access to Yahoo’s advertising technology tools as well as other assets such as search, mail and messenger.

The deal marks the end of Yahoo as an operating company, leaving it with a 15% stake in Chinese e-commerce company Alibaba Group Holding Ltd and a 35.5% interest in Yahoo Japan Corp.

“The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo,” said Yahoo Chief Executive Marissa Mayer in a statement on Monday.

The sale does not include Yahoo’s cash, its shares in Alibaba, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments and Yahoo’s non-core patents.

The Alibaba and Yahoo Japan investments are worth about $40 billion, while Yahoo had a market value of about $37.4 billion as of Friday’s close.