By joining forces with AOL, Yahoo’s costs would come down, he said.
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Yahoo will provide additional information about the investment company at a future date.
United States broadband telecom company Verizon Communications is expected to announce plans to buy the core internet business of a struggling Yahoo Inc on Monday, officials told Bloomberg.
The sale completes Yahoo’s evolution from influential search pioneer and web portal juggernaut to, in the end, a once-dominant brand that lost its way. Mail, its question answer forum Yahoo!
In premarket trading, shares of Verizon were up slightly at $56.30, while shares of Yahoo were down 1.5 percent at $38.80.
The company will be left with its stakes in Chinese e-commerce giant Alibaba and Yahoo Japan, which together are worth around $40bn.
The acquisition will require regulatory approval, though isn’t expected to face opposition.
It is unclear whether Yahoo’s chief executive Marissa Meyer, who joined four years ago to drive the company turnaround, will remain. The company soared and then crashed in the first dot-com bubble before emerging as one of the few internet companies with substantial revenues and profits.
Last Monday, Yahoo reported earnings that coincided with Wall Street’s low expectations for the second quarter of 2016, but CEO Marissa Mayer claimed the company is making strides despite being for sale.
It’s unclear what Mayer will do after the deal closes. For me personally, I’m planning to stay. Many believe buying Yahoo is a savvy move for Verizon.
Meanwhile, it remains to be seen how Yahoo sale deal will restore its losing grip on the ad market.
Yahoo’s downfall from the top has been remarkable. Next up is a trove of about 3,000 patents, which Yahoo is selling in a separate auction, that is expected to fetch more than $1 billion.
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Although Yahoo brings in revenue, its costs are too high.
