New Delhi: Verizon Communications Inc on Monday announced that it has entered into an agreement to purchase US internet firm Yahoo’s core business for $4.83 billion in cash, ending a drawn-out auction process.

“Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers,” said Verizon Chairman and CEO Lowell McAdam in a statement.

“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,” he said.

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The sale does not include Yahoo’s cash and its share in Alibaba Group Holding Ltd, Yahoo Japan, and its noncore patents called Excalibur portfolio. Yahoo will continue to hold these assets and it will change its name at closing.

Yahoo chief executive, Marissa Mayer said the company has changed the world, and will continue to do so through this combination with Verizon and AOL.

“The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social,” said Mayer.

The deal is subject to customary closing conditions, approval by Yahoo’s shareholders, and regulatory approvals, and is expected to close in Q1 of 2017, said the statement.