By Michael KranishMay 04, 2016 06:05:26Google has decided to sell its search business to Yahoo, according to the latest batch of documents leaked by former NSA contractor Edward Snowden.
The deal is being led by Google Chairman Eric Schmidt and Yahoo CEO Marissa Mayer, according a source familiar with the matter.
It would be the first major acquisition by a publicly traded tech company, the source said.
The deal is worth about $1.7 billion, according, according the document.
Google is also in talks with other companies to purchase Yahoo’s data business, the document said.
The sale of the search business would not be a complete severance deal for Google, the company’s chief executive said in an interview with the Wall Street Journal.
Google has a “strong belief” that Yahoo’s current data business model is “inherently unsustainable,” Schmidt told the Journal.
“And that’s something we’re very aware of,” he said.
Mayer, who was named CEO of Yahoo in November, has a history of selling search businesses and also has experience in selling companies’ other businesses.
She also has a long history of investing in search companies, including buying the technology company Google in 2006.
The Google- Yahoo merger is being made with “a very narrow window of opportunity,” the document states.
Schmidt said Mayer’s new leadership team will “continue to focus on the growth of Yahoo,” and the deal is contingent on Yahoo approving the deal.
The source said the deal includes an option for Yahoo to buy Google’s remaining businesses, including search, video-hosting, e-commerce and search ads, in a deal worth about 1.2 billion dollars.
Schmidt said Yahoo’s search business has grown by 25 percent since it went public in June of 2014.
Mayer has said Google has been a great asset for Yahoo.