Yahoo, on Tuesday, announced that it has completed the selling of its operating business to Verizon Communications Inc. for $4.48 billion. According to CNBC, the assets of the company, that include Yahoo Finance would be added with AOL brands like the Huffington Post, under a subsidiary that would be known as Oath. Former CEO of AOL, Tim Armstrong will reportedly be heading the subsidiary that houses more than 50 media and technology brands. Meanwhile, the CEO Marrisa Mayer is also stepping down from her post. Mayer, CEO of the company since July 2012 is expected to receive a payment that is worth more than $23 million.
Earlier in July 2016, Verizon had announced its plan to purchase Yahoo’s internet business. But following the announcement of the deal, Yahoo had informed that it had found two data breaches in 2013 and 2014, that had affected more than 1 billion user accounts. The two companies had then reportedly agreed to change the final acquisition price to $350 million less than the original offer of about $4.8 billion. Meanwhile, CNBC quoted a source saying that around 2,100 jobs could be cut due to the Yahoo and AOL integration. This deal puts an end to Yahoo as an operating company and leaves it with its stake in Alibaba and Yahoo Japan, cash and cash equivalent, few minority investments and patents called Excalibur. These assets will be named Altaba. Earlier in March, Yahoo had revealed that its board member Thomas McInerney will be serving as Altaba CEO.
It must be noted that Armstrong has been at the helm of the integration planning teams ever since the announcement of the transaction. Meanwhile, Oath will begin its operation on Tuesday. In the month of April, Armstrong had announced his leadership team for Oath. He had informed that AOL president and former Yahoo executive Tim Mahlman would be heading the advertising technology, Meanwhile, Yahoo engineer Atte Lahtiranta will be heading tech and Ralf Jacob of Verizon will oversee the digital media department. According to reports, Verizon’s purchase of Yahoo could be seen as a path for it to maximise its reach and boost its presence in mobile and online video spaces against giants like Google and Facebook.