• Latest News

    Friday, June 16, 2017

    Verizon Buys Yahoo’s Core Assets as Mayer Resigns

    Verizon announced on Tuesday, June 13, that it had completed its $4.48 billion  acquisition of Yahoo’s core Internet assets. The acquisition was first announced back in July 2016, but was hampered after Yahoo later announced two hacking attacks that took place in 2013 and 2014, which affected 1.5 billion user accounts and marking the latest play by telecoms to challenge Silicon Valley's dominance in online advertising.

    Under a newly bolstered Verizon, Yahoo and AOL will combine as part of a new media and technology company called Oath. As part of the finalized deal, Yahoo chief executive Marissa Mayer will resign with a “golden parachute” worth just over $23 million in cash, equity and benefits, according to an SEC filing. She served at the company's helm since 2012.
    And more than 2,000 employees will get laid off as Yahoo and AOL reorganize under Verizon's management, according to a person familiar with the matter.
    Once the portal to the Internet, and a pillar of the technology industry, Yahoo has fallen in stature as other Web giants, chiefly Google and Facebook, have built sprawling business empires and amassed cultural cache extending well beyond southern California. Although no longer seen as the pioneering Internet company it once was, Yahoo's umbrella of websites, including Yahoo Finance and Yahoo Sports, commands a staggering amount of online traffic. Yahoo's Internet properties had nearly 200 million unique visitors in April, according to the analytics firm ComScore. Only Facebook and Google claimed more. Experts said it's this massive audience that attracted Verizon to Yahoo.
    Yahoo chief executive Marissa Mayer
    The deal ends Yahoo as an operating company and leaves it with its stake in Chinese e-commerce company Alibaba and Yahoo Japan, its cash, convertible notes, certain minority investments, and a noncore portfolio of patents called Excalibur. These assets will be renamed Altaba. In March, Yahoo said board member Thomas McInerney will serve as Altaba CEO.
    Armstrong has been leading integration planning teams since the transaction was announced, Verizon said, with Oath beginning operation on Tuesday. In April, Armstrong named his leadership team for Oath. AOL president and former Yahoo executive Tim Mahlman will head advertising technology, Yahoo engineer Atte Lahtiranta will lead tech and Verizon's Ralf Jacob will oversee digital media.
    Verizon's acquisition of Yahoo is seen as a way for it to extend its reach to more consumers and boost its presence in the mobile and online video space against the likes of Google and Facebook.

    What’s next for Yahoo?
    Yahoo will merge with AOL, which was also bought by Verizon for $4.4 billion back in 2015, to create a new online media and advertising subsidiary called Oath. Yahoo and AOL will benefit from the data Verizon has on its subscribers.
    Yahoo was one of the pioneers in search engines. However, Google came along and outshined Yahoo, which caused Yahoo to redefine itself. While these attempts were costly, they were not successful, which eventually resulted in its sale. The deal ended the independent life of Yahoo.
    • Blogger Comments
    • Facebook Comments


    Item Reviewed: Verizon Buys Yahoo’s Core Assets as Mayer Resigns Rating: 5 Reviewed By: BrandIconImage
    Scroll to Top