Verizon to buy Yahoo Web business for $4.8 bn

Verizon Communications Inc. confirmed on Monday that it reached a agreement to buy Yahoo Inc.’s Web business for $4.8 billion.

The deal, which is subject to regulatory approval, is expected to close in the first quarter of 2017, the companies said in a joint statement.

Until then, Yahoo will continue to operate independently.

The agreement does not include Yahoo’s stakes in Chinese ecommerce giant Alibaba or in Yahoo Japan.

The announcement came days after media outlets reported that Verizon, the largest wireless service provider in the United States, was the lone bidder left for the Web company.

In an effort to bolster its position as a global wireless and media company, Verizon plans to merge Yahoo with AOL, a company it acquired for $4.4 billion in 2014.

Yahoo CEO Marissa Mayer said the company would continue to innovate in the media industry under Verizon and AOL.

The deal between Verizon and Yahoo, which was the top Internet search engine at one time, was announced before the opening of U.S. equity markets.

In early February, Yahoo said it lost $4.35 billion in 2015 and unveiled plans to cut spending, including a 15 percent staff reduction, as well as the closing of the offices in Madrid, Buenos Aires, Mexico City, Dubai and Milan.