Verizon Closes $4.5B Yahoo Acquisition, Marissa Mayer Resigns

Xavier Trudeau
Juin 20, 2017

Verizon operates America's most reliable wireless network, with 113.9 million retail connections nationwide. It has 11.26 million retail connections across the US.

What remains of Yahoo after the sale, includes an approximately 15% equity stake in China's Alibaba Group Holding Ltd, about 36% in Yahoo Japan Corp, cash and marketable debt securities, certain minority investments and Excalibur IP, which owns some patent assets. "We have dominating consumer brands in news, sports, finance, tech, and entertainment and lifestyle, coupled with our market-leading advertising technology platforms", Armstrong said in a statement. The 21-year-old company also has one of the most popular e-mail services in the world with around 225 million monthly active users.

Under Verizon, Yahoo will merge with AOL into a new entity called Oath, which will oversee the various media properties like Huffington Post, TechCrunch, and Engadget. AOL CEO Tim Armstrong is set to lead the new company, with the new Oath boss boldy stating that the new company would "reach over a billion people each month".

According to the statement on Verizon's website, Armstrong is spearheading attempts to continue building the "industry's most advanced and open advertising technology solutions" with in-house brands such as ONE by AOL and BrightRoll.

Oath is expected to launch this summer.

With the acquisition Verizon Communications will seek to capitalize on the massive web audience that Yahoo possesses with a view to pushing deeper into online content. He will now be the CEO of a new Verizon subsidiary- Oath, which will comprise of Yahoo and various AOL services. About 2,100 employees in Yahoo! will lose their jobs in the aftermath of this deal. This also puts an end to almost five-year leadership of Yahoo CEO Marissa Mayer, who will not join Verizon and will walk away with a compensation package now worth about $125 million, along with her severance pay and stock awards that will be fully vested with the deal's completion. As per SEC filings, Mayer could receive a more than $23 million "golden parachute" payment, including more than $3 million in cash and almost $20 million in equity, for her exit from the company.

"I'm really sad to see the end of Yahoo as an independent company", says Tapan Bhat, a former senior vice president at Yahoo.

The $4.8 billion purchase of Yahoo, one of the oldest existing internet brands, had always been expected before the announcement in 2016.

In case you were focused on the negative aspects of Marissa Mayer's leadership of Yahoo! Inc.

Yahoo's stock will trade till Friday, after which Altaba's will begin next Monday under the name "AABA", reported AP.

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