July 25, 2016 / 11:15 AM / 3 years ago

BRIEF-Verizon to buy Yahoo's operating business for $4.83 bln

July 25 (Reuters) - Verizon Communications Inc :

* Verizon to acquire Yahoo’s operating business

* Deal valued at approximately $4.83 billion

* Until closing, Yahoo will continue to operate independently

* Yahoo intends to return substantially all of its net cash to shareholders

* Verizon will generally issue cash-settled Verizon RSUs for Yahoo RSUs that are outstanding at close

* Goldman, Sachs & Co., J.P. Morgan Securities LLC and PJT Partners are acting as financial advisors to Yahoo board and its strategic review committee

* Sale does not include Yahoo’s cash, Alibaba shares, Yahoo Japan shares, Yahoo’s convertible notes, certain minority investments, non-core patents

* Liontree Advisors, LLC, Allen & Company LLC, Bank Of America Merrill Lynch, Guggenheim Securities, LLC acting as financial advisors to Verizon

* Skadden, Arps, Slate, Meagher & Flom LLP, Wilson Sonsini Goodrich & Rosati And Weil Gotshal & Manges LLP are acting as legal advisors to Yahoo

* Cravath, Swaine & Moore LLP is independent legal advisor to Yahoo’s strategic review committee

* Yahoo’s Alibaba, Yahoo Japan stakes, non-core patents will continue to be held by Yahoo which will change its name and become a publicly traded investment co

* AOL’s Tim Armstrong says “combining Verizon, AOL and Yahoo will create a new powerful competitive rival in mobile media”

* Yahoo will be integrated with AOL under Marni Walden, EVP and President of product innovation and new businesses organization at Verizon

* Deal expected to close in Q1 of 2017

* Yahoo’s cash, shares in Alibaba, shares in Yahoo Japan, Yahoo’s convertible notes, non-core patents will continue to be held by Yahoo

* Yahoo will provide additional information about investment company at a future date

* Combined, AOL and Yahoo will have more than 25 brands in its portfolio Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)

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