Verizon acquires Yahoo; to shed significant portion of its workforce
Internet pioneer Yahoo is officially no more, as Verizon’s acquisition of the US company was completed on June 13.
Negotiations of the deal closed at nearly US$4.5 billion.
Verizon said it has absorbed both Yahoo and AOL, another early internet company it acquired two years ago, into a new subsidiary called Oath.
The synergy of both companies globally will reportedly see Verizon lay off at least 15% of the combined Yahoo and AOL workforce, or around 2,000 employees.
Yahoo has also changed its trading name to Altaba Inc.
Following the sale, its remaining assets consist of an approximately 15% equity stake in
Yahoo’s President and CEO Marissa Myer, who has led the company since 2012, also resigned from her post the same day that the agreement was signed.
"Given the inherent changes to my role, I'll be leaving the company,” she wrote in a blog entry.
Myer also thanked employees in her post. She said:
“As I look back on these achievements, I want to sincerely thank every single Yahoo employee, past and present, for your contributions both large and small. I’m tremendously grateful for all of the hard work and the many sacrifices you’ve made.
“We always endeavoured to do the right thing for our users, advertisers, shareholders, and fellow Yahoos. This has required the most impressive displays of teamwork, innovation, and resilience I’ve ever seen, and working with you has made my time as CEO nothing short of a privilege.”
Former AOL CEO Tim Armstrong has been tapped to lead the new Oath unit. Oath’s core businesses will be in digital media, online advertising, services and software.