Combined, both AOL and Yahoo will have over 25 brands under their umbrella for continued investment and growth under Verizon.

Verizon Communications and Yahoo! have entered into a definitive agreement under which the former is set to acquire the latter’s operating business for close to $4.83 billion (approximately £3.68 billion) in cash, subject to customary closing adjustments.

Yahoo informs, connects, and entertains a global audience of more than one billion monthly users, including 600 million monthly mobile users through its search, communications, and digital content products. The brand also connects advertisers with target advertisers.

The above is achieved via a streamlined advertising stack combining the power of its data, content, and technology. The brand is to be integrated with AOL under Marni Walden, EVP and President of the Product Innovation and New Businesses organisation at Verizon.

The latest addition will create one of the largest portfolios of owned and partnered global brands with extensive distribution capabilities. Combined, AOL and Yahoo will have more than 25 brands under their umbrella for continued investment and growth.

Yahoo’s key assets encompass premium content brands in major categories like finance, news, sports, and a popular global email service with approximately 225 million monthly users. Additional technology assets in the advertising space entail three critical platforms.

They include Brightroll, a programmatic demand-side platform; Flurry, an independent mobile apps analytics service; and Gemini, a native and search advertising solution. The deal is subject to customary closing conditions, approval by shareholders, and regulatory approvals.

The takeover is expected to close during the first quarter of 2017. Until the closing, Yahoo will continue to operate independently, offering and improving its own products and services for users, advertisers, developers and partners. The sale does not include its cash or shares in Alibaba Group.

It excludes also shares in Yahoo Japan, its convertible notes, certain minority investments, and non-core patents called the Excalibur portfolio. The assets will continue to be held by Yahoo, which will change its name at closing and become a registered, publicly-traded investment company.

“Just over a year ago we acquired AOL. 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 Lowell McAdam, Chairman and CEO at Verizon.

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