Good bye to Yahoo: Verizon closes $4.5B Yahoo acquisition
As we reported previously, It’s now official, that Verizon Communication Inc on Tuesday, closed its $4.48 billion acquisition of Yahoo Inc’s core business.
Consequently, the Chief Executive Officer of Yahoo, Marissa Mayer who recently received a $23 million ‘golden parachute’ for her work there, had already resigned.
As she wrote in an email to employees on Tuesday which she also posted on Tumblr, Mayer said “Given the inherent changes to my role, I’ll be leaving the company. However, I want all of you to know that I’m brimming with nostalgia, gratitude, and optimism.”
Verizon, the No 1 wireless operator in US will now combine assets of the newly acquired Yahoo with AOL, which it bought two years ago, to form a subsidiary called Oath, housing some 50 media brand which include TechCrunch, HuffPost and Tumblr and about 1 billion people globally. The team will be led by Tim Armstrong, the hitherto CEO of AOL before the acquisition.
The acquisition and its completions brings to an end, Yahoo as a distinct and independent internet company once valued at more than $100 billion. Yahoo was arguably the one comp for search – the cornerstone of doing business on the internet until the arrival of Google which surpassed Yahoo with a huge wide margin which saw the company falling off the precipice of disastrous and costly efforts to redefine itself which ultimately led to the sale.
As reported by Reuters last week, Verizon will be cutting close to 2,000 jobs or what would be regarded as 15 percent of the 1,400 employees at its now owned Yahoo and AOL units put together. The cut is expected to take effect as early as Wednesday.
On June 16, the remainder of Yahoo not acquired by Verizon will be renamed Altaba Inc, a holding company whose primary assets will be its 15.5 percent stake in Alibaba Group Holding Ltd and a 35.5 percent holding in Yahoo Japan Corp.
Thomas McInerney, a Yahoo board member, will become Altaba’s chief executive officer.
Taking a walk down the memory of how we started with yahoo, it’s with nostalgia that we report this. Just like Yahoo Mail will tell you upon terminating your email account, we say, “We are sad to see you go”.