Verizon says that it will purchase Yahoo for around $4.83 billion. Yahoo's operating business will merge with AOL, which Verizon bought last year for $4.4 billion. "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, Verizon chairman and CEO.
The deal does not include Yahoo's cash, Alibaba shares, Yahoo Japan shares or its Excalibur portfolio of patents. Those will become part of a publicly traded investment company.
Yahoo CEO Marissa Mayer will remain at the company after the buyout. There is no word yet about what will happen with Yahoo's various development tools.