Yahoo! Inc. has agreed to sell its main web businesses to Verizon Communications Inc. for $4.8 billion, ending a two-decade run as an independent company that took it from Stanford University startup at the dawn of the internet age to also-ran behind nimbler online rivals such as Google and Facebook Inc.
The all-cash deal includes Yahoo real estate, but excludes some intellectual property which will be sold separately, Bloomberg reports.
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Yahoo will be left with its stakes in Alibaba Group Holding Ltd. and Yahoo Japan Corp., with a combined market value of about $40 billion.
Verizon will add Yahoo web services that still draw 1 billion monthly users, including mail, news and sports content and financial tools. The largest U.S. wireless carrier also gets smaller but faster-growing assets including mobile applications and advertising technology for video and handheld devices.
Yahoo shares closed 1.4 percent higher on Friday at $39.38, giving the company a market valuation of $37 billion. Yahoo stock has risen 18.4 percent so far this year.
Verizon on Friday ended 1.3 percent higher at $56.10. The company’s market capitalization is $229 billion.