Verizon will be acquiring Yahoo's search and advertising business for $4.8 billion. Wall street pundits had expected Yahoo's earnings call on Thursday last week to be the company's final one as a complete entity.

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In recent years, Yahoo has struggled to be profitable. During its earnings call last week, it reported a $440 million loss in the second quarter. Tumblr, which Yahoo acquired a few years ago for about $2 billion has also struggled to make money.

The price for the deal is way below the $125 million which was Yahoo market capitalization at the height of the dot com boom. "We expect any offer in the range of $5-plus billion should be accepted by the Yahoo board to bring the process to a close," wrote BGC analyst, Colin Gillis, recently.

Verizon also owns AOL and when the deals is final, Yahoo is expected to be merged with AOL to create a company that should be able to take on bigger companies like Google and Facebook.