Verizon is buying Yahoo's core internet business for $4.83bn in cash.
The US telecoms giant bought AOL last year. Now it will add Yahoos consumer services search, news, finance, sports, video, email and the Tumblr social network to a portfolio that includes AOL as well as popular sites like The Huffington Post.
Verizon, which has a vast amount of information about its customers internet use, hopes the combination will help it create a strong No. 3 challenger to Google and Facebook for digital advertising revenue.
Verizon’s strategy in marrying the companies is to create a massive content network of well-respected web properties. Sites like Huffington Post, Engadget, Yahoo Finance and TechCrunch will now all deliver advertising for Verizon, advertising that can be more effectively targeted given what Verizon knows about its mobile customers.
It will help Verizon compete with Google and Facebook, who are way out in front when it comes to market domination of online advertising.