Verizon closed its purchase at $4.48 billion of Yahoo’s core business on Tuesday, thereby finalizing a deal that was held up owing to the two massive hacks affecting over 1 billion Yahoo accounts and marking the telecoms latest play to challenge Silicon Valley’s dominance in the online advertising.
Under the new Verizon, Yahoo and AOL will come as part of a new media and technology company named Oath. The Yahoo sale was announced last summer, with a price tag of $4.8 billion. But few months later, the company disclosed data breaches comprising the personal information of hundreds of millions of people. Following the breaches, Verizon and Yahoo and Verizon agreed to discount the purchase price by $350 million.
As the finalized deal, Yahoo chief executive Marissa Mayer will resign with a “golden parachute” worth a little more than $23 million in cash, equity and benefits, as per SEC filing. She served since 2012 the company’s helm.
Nearly 2,000 employees will be laid off as Yahoo and AOL are reorganizing under Verizon’s management; this information is according to a person familiar with inside matter.
Yahoo fell in stature in comparison to Facebook and Google, the web giants, who have built business empires and have a cultural cache also extending very well. Yahoo’s websites has online traffic in Yahoo Finance and Yahoo Sports, while the internet properties had nearly 200 million.
“Verizon will expand their audiences significantly,” said a senior analyst at Forrester Research, Susan Bidel. Bidel said Verizon is positioning Oath as a platform for advertisers to connect with audiences and provides targeted information about the kinds of people they are reaching.