– This is the script of CNBC's news report for China's CCTV on July 26, Tuesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
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.
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.
The deal would mark the end of Yahoo as an operating company, leaving it only as the owner of a 35.5 percent stake in Yahoo Japan, as well as its 15 percent interest in Chinese e-commerce company Alibaba.
The Yahoo deal did not include Yahoo's cash, convertible notes, certain minority investments and non-core patents (known as the Excalibur portfolio.) It also did not include Yahoo's Asian assets, including its Alibaba Group Holdings stake (it owns 15 percent in the Chinese e-commerce giant) or Yahoo Japan (in which it owns a 35.5 percent stake). Those assets will continue to be held by Yahoo, but the names will change and become a registered, publicly traded company when the deal closes.
In an interview on CNBC, Mayer signaled that she would be open to staying with the company even though no decision has been made on her future following its acquisition by Verizon.
[S-ARMSTRONG SCALE TRT :20] "For us the Yahoo deal and the Yahoo relationship is exactly what you guys have been asking us about for years which is how do you get more scale // BUTTED// I think between the team at Verizon and the team at AOL and the team at Yahoo we will set the business up to compete at a completely different level than any of our business have been able to do alone in the past"
AOL CEO Armstrong told CNBC that combining the power of Yahoo and AOL could give Verizon Communications the necessary tools and reach to become a major powerhouse in digital advertising.
[S-MAYER=PROUD DAY :21] "I THINK THAT WHEN YOU LOOK AT IT, IT REPRESENTS THE FACT THAT VERIZON IS RECOGNIZING TREMENDOUS VALUE HERE AT YAHOO! AND SO IT'S A VERY PROUD DAY FOR US, WE'RE EXCITED TO ONE, BE ACHIEVING THE SEPARATION FROM THE ALIBABA STAKE BUT DOING IT IN A WAY THAT SETS UP THE STRATEGIC BUSINESS FOR FURTHER SYNERGIES AND OPPORTUNITIES AND ACCELERATION."
In a statement, Verizon said it expects the deal to close in the first quarter of 2017, subject to approval of Yahoo shareholders and regulators.
CNBC's Qian Chen, reporting from Singapore.