Verizon Completes $4.48 Billion Acquisition of Yahoo; Marissa Leaves with $23 Million

Judith Bessette
Junho 19, 2017

Approximately 2,000 Yahoo and AOL workers are expected to lose their jobs as Verizon trims expenses and eliminates overlapping positions, according to Tim Armstrong, who has been running AOL since Verizon bought that company for $4.4 billion two years ago. Verizon claims Oath's assets already engage "more than a billion people around the world". 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.

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.

Mayer has been CEO of Yahoo since 2012, but used an email, posted on blogging site Tumblr, to inform staff that she will step down now that the deal has been completed.

"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".

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Verizon and Oath confirmed Mayer's departure in the last paragraph of Tuesday's press release about the deal, ending with: "Verizon wishes Mayer well in her future endeavors". Verizon is believed to make cuts as early as Wednesday.

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. Verizon plans to leverage Yahoo's reach to compete with Google and Facebook in the online advertising space. However, I want all of you to know that I'm brimming with nostalgia, gratitude, and optimism.

Yahoo's stock will trade till Friday, after which Altaba's will begin next Monday under the name "AABA", reported AP. Yahoo board member Thomas McInerney will become its CEO.

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