Verizon, American telecoms firm, confirmed it has agreed to buy US internet firm Yahoo for $4.83bn (£3.62bn) in cash, ending a lengthy sale process for the fading web pioneer.
Yahoo will be combined with AOL, another faded internet star, which Verizon bought last year. This will give it access to Yahoo’s advertising technology tools as well as other assets such as search, mail and messenger.
The deal does not include Yahoo’s cash, its shares in Alibaba, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments and Yahoo’s non-core patents.
The price tag for the deal is well below the $44bn Microsoft offered for Yahoo in 2008 or the $125bn it was worth during the dot.com boom.
Verizon said the deal for Yahoo's core internet business, which has more than a billion active users a month, would make it a global mobile media company.
Marissa Mayer, chief executive of Yahoo, said: "Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL."
In an email to staff, Ms Mayer said she was "planning to stay", adding: "I love Yahoo, and I believe in all of you. It's important to me to see Yahoo into its next chapter."
AOL chief executive Tim Armstrong said the deal was about "unleashing Yahoo's full potential", and creating a major player in mobile media.