Verizon announced early Monday morning that it has reached an agreement to acquire Yahoo for $4.53 billion in cash. The news follows a report from late last week that suggested the two companies had settled on a deal and that an announcement was imminent.

"The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising," Verizon chairman and CEO Lowell McAdam said.

Verizon will receive Yahoo's operating assets but not the company's equity in Alibaba or, indeed, any of the assets Yahoo holds in Asia including Yahoo Japan shares. "The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo," Mayer explained. "This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising and social."

Yahoo said the deal is subject to regulatory approval and that it is currently scheduled to close during the first quarter of next year.