On Monday, Recode, the site of Recode Media, revealed that it was being bought by Yahoo for $3.1 billion, a $1 billion deal that is expected to close in the first half of 2019.
Yahoo said it plans to spend $1.2 billion to acquire the business, but that it will pay for the acquisition of some of Recodes journalism properties.
The deal, according to sources, will also include Yahoo’s digital arm, Yahoo News, as well as other Yahoo properties, including video.
The deal is expected be finalized by the end of the month.
The acquisition is expected provide Yahoo with a better digital presence and expand its reach in media, according the company.
“We have been looking for an opportunity to expand our editorial operations and to help drive innovation and growth for Yahoo,” Yahoo CEO Marissa Mayer said in a statement.
“The Yahoo acquisition of Recoding will bring Yahoo News and Yahoo News Lab into the fold, and it will help us deliver new ways to reach people.”
The company said it will invest in new talent, improve its digital editorial tools and enhance its content management system, all while making a number of other changes, including cutting staff and reducing staff costs.
“We are making investments in key areas of our business, and we will continue to invest in our core business, including new products and services for advertisers, which will drive our future growth,” Mayer added.
The announcement comes a few days after Yahoo said that it would be buying the mobile app developer Snapchat for $1 a share.
The company said that its goal was to invest $1 trillion in the US, and that it plans on expanding the size of its US workforce.
“Our team of over 400 is dedicated to building an exceptional mobile app,” CEO Jack Dorsey said at the time.
“That will mean building an entire mobile app from the ground up and investing aggressively in all aspects of its design and development.
This is a game changer.”