Yahoo, once as big of an internet company as one could find, has been sold to Verizon Communications for $4.8 billion, according to The Wall Street Journal. Just prior to when the dot-com bubble burst in 2000, the digital pioneer, at that time, had a market capitalization of some $125 billion.
The agreement is expected to be announced on Monday, per the Journal. UPDATE: The deal became official this morning.
It's an intriguing marriage on many levels when it comes to advertising, primarily because Yahoo has struggled to build its mobile ad business, while Verizon offers a wealth of data from on-the-go consumers. When Verizon bought AOL a little over a year ago, the telecom giant chiefly acquired AOL's breadth of programmatic advertising technology.
With Yahoo, it seems to mostly gain the email/search player's more than 200 million monthly users. Verizon also now owns Tumblr thanks to the Yahoo purchase, giving it a foot in the door when it comes to social media and an avid millennial user base.
Perhaps the combination of Verizon (mobile data), AOL (programmatic) and Yahoo (audience) can create a digital advertising juggernaut to rival the likes of Google and Facebook. Maybe, maybe not—but that's almost certainly the idea.
Meanwhile, The New York Times has speculated that Yahoo CEO Marissa Mayer will garner a $55 million severance package once the acquisition is complete.
Check back with Adweek tomorrow for additional coverage.