Verizon will complete the acquisition of internet giant Yahoo’s core business for around $4.83 billion (£3.69bn).
The merger with Verizon’s AOL unit marks the end of a downward spiral for Yahoo, which was at the forefront of ‘search’ with Google after the company was formed in 1994.
Google has gone on to dominate the digital world through expansion into mobile platforms, while it is constantly looking forward with initiatives such as the acquisition of artificial intelligence start-up DeepMind.
In contrast, there is a feeling that Yahoo has been reliant upon past glories.
Verizon has bought Yahoo’s search, mail, content and ad tech businesses, which will increase the new company’s digital advertising reach to an estimated 4.5 per cent share of the US market, according to eMarketer.
Only Google (36 per cent) and Facebook (17 per cent) have a greater share.
Verizon chairman and CEO Lowell McAdam said: “Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers.
“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.”
The Daily Mail was at one point rumoured to be interested in purchasing Yahoo.
Yahoo/AOL will be overseen by Verizon’s president of product innovation and new businesses Marni Walden.
Yahoo CEO Marissa Mayer – hired from Google in 2012 – is “planning to stay” according to an email she wrote to employees about the deal.
Yahoo claims it has more than a billion monthly active users, including 600m on mobile, but has seen declines in revenue and profit.
It is keeping its stakes in Chinese internet giant Alibaba and Yahoo Japan as well as several minority investments separately from Verizon.