US internet firm Yahoo is being acquired by American telecoms giant Verizon Communications for nearly $5bn (£3.8bn) in cash.
Yahoo will be combined with AOL, another faded internet star, which Verizon bought last year.
The deal does not include Yahoo`s valuable stake in Chinese firm Alibaba.
The price tag for the deal is well below the $44bn Microsoft offered for Yahoo in 2008 or the $125bn it was worth during the dot.com boom.
Verizon said the deal for Yahoo`s core internet business, which has more than a billion active users a month, would make it a global mobile media company.
The end of Yahoo: Why Verizon spent big
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."
In an email to staff,Ms Mayer said she was "planning to stay", adding: "I love Yahoo, and I believe in all of you. It`s important to me to see Yahoo into its next chapter."
AOL chief executive Tim Armstrong said the deal was about "unleashing Yahoo`s full potential", and creating a major player in mobile media.
Together they will have more than 25 brands, including Yahoo Mail, Flickr and Tumblr as well as AOL`s Huffington Post and Techcrunch news sites.
The deal is expected to close in early 2017.
Ms Mayer, who took the helm at Yahoo 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".
Yahoo and US mobile network Verizon were reported on Friday to be in exclusive talks over the deal.
1994 Yahoo - which stands for Yet Another Hierarchically Organized Oracle - is founded
2000 Yahoo valued at $125bn at height of dot.com boom
2002 Google rejects a $3bn bid from Yahoo
2008 Microsoft`s $44.6bn offer for Yahoo is turned down
2013 Blogging site Tumblr acquired by Yahoo for $1.1bn
2015 Yahoo makes net loss of $4.4bn
2016 Verizon agrees $4.8bn deal to buy Yahoo
- Prada seeks younger customers in bid for growth
- Lotte vice chairman Lee In-won found dead
- German business confidence falls post-Brexit, says Ifo
- Tesla touts speed and driving range with new upgraded battery
- Stocks creep up amid Fed limbo, dollar dips leftright 22leftright 12leftright
- China Crinkles Aluminum Foil Makers
- Cisco to lay off about 14,000 employees: tech news site CRN leftright 22leftright
- UK to avoid recession and world economy to ‘stabilise’ as Brexit shock passes - but US poses biggest risk to global growth
- Fuel prices push up UK inflation rate to 0.6%
- Rio 2016: Kohei Uchimura gets £3,700 Pokemon Go bill