DHAKA: US telecoms giant Verizon Communications is to buy Yahoo's search and advertising operations for $5bn (£3.8bn).

The two firms were reported on Friday to be in exclusive talks over a possible deal.

US internet firm Yahoo announced in February that it was looking at ‘strategic alternatives’ for its core internet business.

Verizon declined to comment on the reports, BBC reports on Monday (July 25).

A formal announcement is expected by the day before US markets open for trading.

Over the last few years Yahoo has struggled to keep up with the changing internet advertising landscape, with some analysts arguing that it has failed to remain relevant in many of its core markets.

Chief executive Marissa Mayer, who took the helm in 2012, has made little progress in returning the company to profit.

Last week the firm reported a $440m loss in the second quarter, but said the board had made ‘great progress on strategic alternatives’.

The reported price tag for the deal is well below the firm's $125bn market value at the height of the dot.com boom.

But BGC analyst Colin Gillis wrote recently ‘We expect any offer in the range of $5-plus billion should be accepted by the Yahoo board to bring the process to a close.’

BDST: 1125 HRS, July 25, 2016
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