Yahoo has agreed to sell its “core internet operations and land holdings to Verizon Communications for $4.8 billion, according to people briefed on the matter, who were not authorized to speak about the deal before the planned announcement on Monday morning,” reports the New York Times.
The story continues, “After the sale, Yahoo shareholders will be left with about $41 billion in investments in the Chinese e-commerce company Alibaba, as well as Yahoo Japan and a small portfolio of patents.”
The story adds that Verizon “plans to combine Yahoo’s operations with AOL, a longtime Yahoo competitor that Verizon acquired last year. The idea is to use Yahoo’s vast array of content and its advertising technology to offer more robust services to Verizon customers and advertisers.”
As for Yahoo’s controversial CEO, Marissa Mayer, the story says that she “is not expected to join Verizon, but she is due to receive a severance payout worth about $57 million, according to Equilar, a compensation research firm.”
The story also says that “Ms. Mayer, who was hired as Yahoo’s chief executive four years ago but failed to halt its decline, was nevertheless rewarded handsomely for her efforts. Including the severance, she will have received cash and stock compensation worth about $218 million during her time at Yahoo, according to Equilar’s calculations.”