Verizon Communications on Monday announced plans to acquire Yahoo for $4.8 billion in cash, ending months of uncertainty after Marissa Mayer's battered internet giant company said it would review strategic alternatives.
Share prices of both companies initially moved slightly higher in premarket trading after the announcement, but they turned lower. By early afternoon, Yahoo was down 2.7 percent. (For the latest prices, click here for Yahoo and here for Verizon.)
Marni Walden, Verizon president of product innovation and new businesses, said on CNBC's "Squawk Box" that the deal included Yahoo's core operating business and patents.
The acquisition will help the telecom company in its efforts to build a media company, she said.
"Yahoo gives us scale and that's what's most critical here. We go from being in the millions of audience to the billions. We want to compete and that's the place that we need to be, so we're very pleased with where we are today," Walden said.
The transaction is seen boosting Verizon's AOL internet business, which the company acquired last year for $4.4 billion, by giving it access to Yahoo's advertising technology tools, as well as other assets such as search, mail, messenger and real estate.