Verizon and Yahoo to announce $5bn deal
UPDATE: Verizon confirms purchase of Yahoo’s core Internet business for $4.83bn in cash
Reports have emerged that US telecoms giant Verizon Communications is to buy Yahoo's search and advertising operations for $5bn.
Both companies have yet to comment but reports by Reuters suggest the announcement will be made today.
Reuters stated that the transaction would provide access to Yahoo's advertising technology tools, as well as features such as search, mail and messenger. Furthermore, the move aims to boost Verizon's AOL Internet business, which the company acquired last year for $4.4bn, and it now owns news sites including Huffington Post, Techcrunch and Engadget,
According to analysts, Yahoo has struggled with the changing Internet advertising landscape, plus CEO Marissa Mayer has made little progress in returning profit.
Reports claim that Verizon Communications plans to form a digital group which will be able to compete with Google and Facebook.
Verizon Communications is not the only firm that has shown interest in Yahoo; reportedly AT&T, investor Warren Buffet and the owner of the Daily Mail also made bids.
UPDATE: Verizon Communications has announced the acquisition of Yahoo's core Internet business for $4.83bn in cash. The deal sees the end of Yahoo as an operating company.
Yahoo's CEO Marissa Mayer said in a statement: "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."