Internet pioneer Yahoo will merge with AOL, another early online innovator, to create a technology giant that can compete with established industry powers, telecommunications firm Verizon said as it announced Yahoo's purchase Monday.
The 4.8-billion-dollar purchase of Yahoo, one of the oldest existing internet brands, had long been expected. The company has found it hard to compete with newcomers like Google and Facebook in the battle for online advertising.
But US-based Verizon said as it announced the purchase that Yahoo still had much to offer.
"Combining Verizon, AOL and Yahoo will create a new powerful competitive rival in mobile media, and an open, scaled alternative offering for advertisers and publishers," said AOL chief executive Tim Armstrong, noting that the merged AOL and Yahoo would have 25 well-established brands to entice customers.
Verizon purchased AOL in 2015. Once one of the world's leading internet portals, it entered into an unsatisfying alliance with Time Warner in 2000 that was later undone, a business deal that lingers as a cautionary tale for many who push for mergers.
The Verizon-Yahoo deal focuses on Yahoo's operating business and does not include its lucrative holdings in other foreign ventures.
"Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL," said Yahoo chief executive Marissa Mayer in a statement.