Marissa Mayer quits as Verizon finally closes Yahoo deal
- Author: Zachary Reyes Jun 14, 2017,
Jun 14, 2017, 16:28
On Tuesday, Chief Executive Officer Mayer exited the company with a $23-million payout after leading United States telecom Verizon completed a $4.48-billion acquisition of Yahoo's core Internet business.
The chief executive of Yahoo, Marissa Mayer, told employees she would be resigning now that the transaction was over.
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". Oath's more than 50 brands include HuffPost, TechCrunch and Tumblr and are reported to reach over a billion people every month.
Yahoo's email and other digital services will be run by Tim Armstrong, who has been in charge of AOL. This is likely due to the number of hacks that were made public after Verizon announced the acquisition previous 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.
Yahoo owns a 15% stake in Alibaba, China's e-commerce giant, as well as a 35% interest in Yahoo Japan. You can read her full farewell letter to employees over on Tumblr. That collection of formerly Yahoo assets will be renamed Altaba Inc, according to Yahoo.
It has been quite the saga, filled with mammoth data breaches and billion-dollar discounts, but finally Verizon has closed its $4.48 billion acquisition of Yahoo's core business. Mayer is set to receive a severance package worth about $23 million and stock compensation worth about $187 million. Yahoo will now be combined with AOL, which Verizon bought in 2015, to become Oath, as planned.
Altaba will trade on Nasdaq under YHOO through Friday; starting Monday, it will trade under ticker AABA (no action required by stockholders).
"They're all around us, in Silicon Valley, and around the globe", says Dan Rosensweig, chairman and CEO of Chegg, and a former COO at Yahoo. It was nearly synonymous with the Internet itself for much of the 1990s with a market value that topped $100 billion around the dot-com boom.