The Verizon-Yahoo deal is now official.
First reported by Bloomberg several hours before the public announcement of both camps, Verizon will buy the ailing Yahoo–once a large search giant–for about $4.83 billion.
In a statement to shareholders and press people, Verizon’s chairman and chief executive Lowell C. McAdam said that the acquisition will put America’s largest carrier in a “highly competitive position.” The deal, he adds, will also help accelerate Verizon’s revenue stream in digital advertising.
Investors and analysts were not surprised by the announcement. Since the rise of Google, and the surge of mobile ecosystems, Yahoo has struggled to keep up. Bloomberg says the deal will end Yahoo’s “survival fight,” and perhaps Marissa Mayer’s reign as the chief executive.
From Google, Mayer moved to Yahoo with the goal of re-inventing the internet company. Under her leadership, Yahoo acquired Tumblr, a popular micro-blogging website, and launched several mobile apps for Android and iOS.
Yahoo, under the umbrella of Verizon, will work with old-internet rival AOL. Last year, Verizon acquired American Online–which owns several known internet brands like the Huffington Post and TechCrunch–for $4.4 billion.
When asked about staying in the company and working with Tim Armstrong, the CEO of AOL, Mayer has told the CNBC that she loves Yahoo, and wants to see it in the next chapter.
Verizon now controls a large portion of the internet. The two past rivals have search engines–although AOL is powered by Bing.com–and operate free e-mail service.
The deal, several experts also say, is putting Verizon up against Google, the largest search engine, and Facebook in part. Google operates competing products, including Gmail and the Google Search. Meanwhile, the largest social network has been recently pushing its own content platform to consumers via the Instant Articles, though it’s worth noting that some AOL properties participate in it.