Major layoffs loom for AOL and Yahoo, report says

Verizon this summer is expected to launch a new subsidiary that'll combine the core businesses of AOL and Yahoo into a single, cohesive unit called Oath.

Verizon - the parent company of AOL - announced it would scoop up Yahoo last July for almost $5 billion. The final vote comes almost a year after the original acquisition was announced and follows plenty of speculation about whether the deal would actually go through. Verizon is expected to cut as many as 2,100 employees from the combined venture, according to multiple reports.

Yahoo! Inc. ("Yahoo" or the "Company") (NASDAQ: YHOO) announced today the preliminary results of its special meeting of stockholders (the "Special Meeting") held today.

Recode said the cuts would likely come in areas where there is overlap between AOL and Yahoo. Tim Armstrong, the former AOL CEO who tried unsuccessfully to merge AOL and Yahoo when they were both independent, will now be CEO of Oath.

Marissa Mayer will be stepping down as CEO of Yahoo, though she will still own about $186 million worth of stock when she leaves.

Following the closing of the transaction, Yahoo! will change its name to "Altaba Inc." and register as an investment company under the Investment Company Act of 1940.

  • Zachary Reyes