Web pioneer Yahoo has finally found a buyer. Monday saw Verizon Communications Inc.(which also owns AOL) officially making an announcement about the whopping $4.83 billion acquisition deal. The deal finally puts an end to Yahoo's months-long sale dilemma which it was facing.

According to the deal, Verizon will be taking over Yahoo's core internet properties, which which includes its advertising, content, search and mobile activities and use it to expand its media and digital advertising business.

Industry experts predict that the Yahoo acquisition deal will help in boosting Verizon Communications's AOL internet business, which it bought for $4.4 billion in a deal last year. The acquisition deal also provides Verizon with an access to the Yahoo's assets such as messenger, mail and search, and its much famous advertisement technology tools such as Flurry and BrightRoll.

“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 in a press release regarding the deal.

It's important to note that the Web Pioneer's stakes in Yahoo Japan and Alibaba haven't been included in the acquisition deal. As of figures calculated on 22nd July, Yahoo's 34% stake in Yahoo Japan is worth a good $8.3 billion, and its 15% stake in China's Alibaba is worth a whopping $31.2 billion. Further, the Web Pioneer's $1 billion worth patent portfolio has also been kept away from the deal.

Verizon Communications Inc. has decided to integrate Yahoo with AOL, and designated Marni Walden, Verizon EVP and President of the Product Innovation and New Businesses organization to head the process.

The transaction is expected to be closed in the first quarter of 2017. According to the company, Yahoo will continue as an independent company until the acquisition deal receives shareholder and regulatory approval.

According to Marissa Mayer, Yahoo's Chief Executive, the sale of Yahoo's operating business, which effectively separates their Asian asset equity stakes, is an important step in the company's strategic plan to unlock shareholder value for Yahoo.

Mayer, in a Tumblr post, said she planned to stay at Yahoo, but Verizon's Marni Walden is yet to take a decision on the new leadership team.

February this year saw the Web Pioneer making an official announcement about exploring offers for acquisition. Then in March, a controversial letter by activist investor Starboard surfaced stating that there is a need to replace the entire board and that the management team and the board were intentionally dragging the acquisition process. One could smell Starboard's desperation to sell the company as quickly as possible so as to maximise the acquisition price.

When Marissa Mayer joined the Web Pioneer in July 2012, there were huge expectations from her. But, even after a number of tries (such as acquiring Tumblr for $1.1 billion, acquiring Brightroll for $640 million) she somehow couldn't revive the company's fortunes.

Verizon even justified the acquisition in an official announcement. According to it, Yahoo has a global audience of more than 1 billion users, which includes 600 million on mobile.
Further, it also owns premium brands in sports, finance and news. And when it comes to advertising technology and analytics, Verizon Communications stated Gemini, Brightroll and Flurry. Lastly, it also mentioned that the Yahoo Mail currently has approximately 225 million monthly active users.

Whether Yahoo's acquisition will have a considerable effect on Verizon's fortunes is something that only time will tell.

[Top Image - lev radin / Shutterstock.com]

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