US internet firm Yahoo will be sold to American telecoms giant Verizon Communications for nearly $5bn (£3.8bn) in cash.
Verizon said the deal for Yahoo, whose search engine and other sites have more than 1 billion monthly users, would make it a global mobile media company.
It comes after Verizon bought AOL, another major internet name, in 2015.
Yahoo announced in February that it was looking at “strategic alternatives” for its core internet business.
The deal, which does not include Yahoo’s valuable stake in Chinese online giant Alibaba, is expected to close by the first quarter of next year.
Marissa Mayer, chief executive of Yahoo, said: “Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL.”
Verizon and Yahoo were reported on Friday to be in exclusive talks over a deal.