Verizon closes Yahoo deal; Mayer steps down
- Author: Carolyn Briggs Jun 24, 2017,
Jun 24, 2017, 21:30
As part of the finalized deal, Yahoo chief executive Marissa Mayer will resign with a "golden parachute" worth just over $23 million, in cash, equity and benefits, according to an SEC filing. "Verizon wishes Mayer well in her future endeavors", a Verizon press release published on Tuesday reads.
Around 2,100 employees are expected to be pinkslipped at Yahoo and AOL, a division of Verizon after the merger - announced last week and closed on Tuesday -, between the two companies.
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.
With AOL and Yahoo, Verizon aims to take on Facebook (FB) and Alphabet's (GOOGL) Google in digital video advertising. While the agreement was announced last July, the deal itself was in jeopardy, after Yahoo disclosed two massive security hacks that exposed user accounts and threatened its trust with consumers, eventually slashing the deal's price by US$350 million. While Yahoo's revenue was $5.1 billion, Verizon may not be keeping all of its web assets intact.
"We have dominating consumer brands in news, sports, finance, tech, and entertainment and lifestyle coupled with our market leading advertising technology platforms". Over the past few months he has been establishing a leadership team for Oath.
The leftovers, which include Yahoo's holdings in Yahoo Japan and Chinese conglomerate Alibaba are not part of the deal and are now be part of a holding company named Altaba.
That collection of Yahoo assets will be renamed Altaba Inc. As per SEC filings, Mayer could receive a more than $23 million "golden parachute" payment, including more than $3 million in cash and almost $20 million in equity, for her exit from the company.