It’s now official. After Yahoo shareholder approval last week, Verizon today announced that it has finally closed its acquisition of Yahoo, which it plans to combine with its AOL assets into a subsidiary called Oath, covering some 50 media brands (including TechCrunch) and 1 billion people globally. It will be led by Tim Armstrong, who was the CEO of AOL before this. As expected, Marissa Mayer, who had been the CEO of Yahoo, has resigned.
“Given the inherent changes to Marissa Mayer’s role with Yahoo resulting from the closing of the transaction, Mayer has chosen to resign from Yahoo. Verizon wishes Mayer well in her future endeavors,” Verizon said in a statement.
The deal is another sign of the massive consolidation that continues to happen in the world of online media and content, as large companies look to bring together multiple audiences for economies of scale to build out stronger advertising businesses in competition with the likes of Google and Facebook.
“The close of this transaction represents a critical step in growing the global scale needed for our digital media company,” said Marni Walden, Verizon president of Media and Telematics (which will include Oath), in a statement. “The combined set of assets across Verizon and Oath, from VR to AI, 5G to IoT, from content partnerships to originals, will create exciting new ways to captivate audiences across the globe.”
As we wrote last week, there will be cuts of around 15 percent of all staff associated with the acquisition of Yahoo and merger with AOL, around areas like operations and sales and marketing. Today, no word about that in the official announcement although we are asking about this.
Also not specified is who else is departing along with Mayer. As we reported last week, Adam Cahan, who had been an SVP at Yahoo very close to Mayer, was also on his way out, as was Bob Lord, the CISO who was at the head of Yahoo’s security operations when its massive breaches were revealed (although he was not there not at the time that they were taking place). We’re trying to confirm these and other details, but unsurprisingly David Filo, Eddy Hartenstein, Richard Hill, Marissa Mayer, Jane Shaw, Jeffrey Smith and Maynard Webb Jr. have already resigned from Yahoo’s board.
“We’re building the future of brands using powerful technology, trusted content and differentiated data. 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. “Now that the deal is closed, we are excited to set our focus on being the best company for consumer media, and the best partner to our advertising, content and publisher partners.”
This will include not just media brands but ad tech underpinnning how to leverage these audiences. In this case, the focus in on ONE by AOL and its BrightRoll technology covering mobile, video, search, native and programmatic ads.
Carriers have been an especially interesting player in this regard, as they are looking to offset declines in their legacy businesses. But don’t cry for Verizon just yet: the company employs 161,000 people and made $126 billion in revenues in 2016, with 113.9 million retail connections in its mobile business.
An internal memo from Armstrong is below.
