Verizon confirmed yesterday that it will be buying Yahoo’s core operating business for about $4.83bn cash, in a deal that will end months of uncertainty over the future of the struggling internet group.

The phone group said in a statement that Yahoo would be integrated with AOL under long-time Verizon executive, Marni Walden.

The sale does not include Yahoo’s cash, its shares in Alibaba Group Holdings, its shares in Yahoo Japan, Yahoo’s convertible notes, certain minority investments, and Yahoo’s non-core patents, called the “Excalibur” portfolio.

Verizon said these assets would continue to be held by Yahoo, which would change its name when the deal closed, and become a registered, publicly traded investment company. Yahoo will provide additional information about the investment company at a future date.

It said Yahoo intends to return substantially all of its net cash to shareholders and will determine and communicate a specific capital return strategy.

“Yahoo is a company that has changed the world, and will continue to do so through this combination with Verizon and AOL,” said Marissa Mayer, Yahoo’s chief executive.

“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. 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.”