24 June, 2017
"The company had confronted seemingly insurmountable business challenges, " Mayer said in her leaving message to employees. Oath comprises more than 50 media and technology brands including TechCrunch, HuffPost, Tumblr, Engadget and flickr.
But Yahoo made cuts to its workforce last year and more are expected this year.
Marni Walden, Verizon president of Media and Telematics (including Oath), noted that the acquisition will help boost the company's role as a digital media company, beyond its capabilities as a carrier. Armed with unique data about the browsing behavior of internet users, companies like Verizon and AT&T can also use that information to shape the formats of websites and videos, and serve more effective, pinpointed ads, he said.
The deal was thrown into doubt after Yahoo was twiced hit by cyber attacks, with the original enterprise value of the agreement eventually dropped by US$350 million in an effort to push it through.
The deal's close comes almost a year after the acquisition was first announced. "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.
As per Yahoo's previous filings with the Securities and Exchange Commission (SEC) it is estimated that Mayer's "golden parachute" payout will amount to more than $23m. The Verizon takeover and the consequent merger with AOL is also a clear sign of the consolidation taking place in the space as media entities acquire other companies in a bid to consolidate audience.
Although Marissa Mayer's fate under Verizon was still unclear, Mayer's resignation was a generally predicted outcome.
Yahoo stock was trading at about $52.50 midday Tuesday.
While the axe looms for workers at Oath, the remainder of Yahoo will be renamed Altaba.
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.