Verizon has completed its acquisition of the operating business of Yahoo for $4.48 billion, which coupled with AOL creates what the telco boasts is a global digital-media powerhouse that reaches more than 1 billion consumers.
As expected, Yahoo CEO Marissa Mayer is leaving the company with the deal’s closing. “Given the inherent changes to Marissa Mayer’s role with Yahoo resulting from the closing of the transaction, Mayer has chosen to resign from Yahoo,” the telco said in a statement. “Verizon wishes Mayer well in her future endeavors.”
The merged AOL-Yahoo organization will be called Oath, comprising more than 50 media and technology brands. Tim Armstrong, previously CEO of AOL, is now CEO of Oath, which is part of Verizon’s Media and Telematics division.
Verizon expects to cut about 15% of the workforce of the new Oath organization, representing the elimination of about 2,100 jobs.
“The close of this transaction represents a critical step in growing the global scale needed for our digital media company,” Marni Walden, Verizon president of Media and Telematics, said in a statement. “The combined set of assets across Verizon and Oath, from VR to AI, 5G to IoT, from content partnerships to originals, will create exciting new ways to captivate audiences across the globe.”
The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Build Studios, Yahoo Finance, and Yahoo Mail.
Yahoo Inc., meanwhile, as previously announced will change its name to “Altaba Inc.” effective June 16. The company’s remaining assets include a 15% equity stake in Chinese ecommerce giant Alibaba Group; a 36% equity stake in Yahoo Japan; and Excalibur IP LLC, which owns certain patent assets that were not core to Yahoo’s operating business. Altaba’s CEO is Thomas McInerney, former CFO of Barry Diller’s IAC, and the company has relocated its headquarters to New York City.