The deal will see the Yahoo News, email and other assets integrated into Verizon’s recently acquired AOL unit, while Yahoo will be left as a separate investment company holding Yahoo Japan and the company’s most valuable asset, a huge stake in Alibaba.

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

Yahoo shares fell 2.6 percent at $38.37 after the long-expected deal was announced, while Verizon lost 0.4 percent to $55.85.

Overall, at 1430 GMT, the Dow Jones Industrial Average was down 0.5 percent from Friday’s close at 18,481.21.

The broader S&P 500 fell 0.4 percent at 2,165.53 and the tech-heavy Nasdaq dropped 0.2 percent at 5,092.35-7.81.

Oil super-majors Chevron, Exxon Mobil and Royal Dutch Shell saw their share prices declining on Monday morning as the industry continued to feel the affects of global oversupply.

An hour into the day’s trading, Chevron was down more than 2 percent at $103.35 while Exxon and Shell had dropped more than 1.4 percent at $92.66 and $53.73 respectively.

“There’s been a lot of talk about the amount of oil in storage and especially high gasoline inventories in the US and this is making people concerned,” said Mike Lynch of Strategic Energy & Economic Research.

“If the inventories numbers on Wednesday are not very bullish, I thing you’re going to see the market continue to drift down towards 40.”

A barrel of West Texas Intermediate for September delivery was down 89 cents on the New York Mercantile Exchange at $43.30.