Verizon acquires Yahoo; deal closes next week
The Shareholders of one of the world’s most popular web based company, Yahoo, have voted to endorse a reviewed agreement where Verizon will buy Yahoo’s core internet assets for $4.48 billion, according to the preliminary results from a special shareholder meeting. The deal is expected to close on Tuesday, 13th June, 2017.
The merger will also cause Verizon to lay off a total of close to 2,100 staffs or 15% of the workforce from the combined venture. This cut will be announced next week once the deal closes.
The acquisition will see to Yahoo and AOL forming a new digital company under Verizon which will be called “Oath”.
“Oath’s strategy is to lead the global brand space. With access to over 1 [billion] consumers upon close, we will be positioned to drive one of the most important platforms in the consumer brand space. Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy,” an AOL spokesperson said.
Tim Armstrong, the CEO of AOL will be in charge of the newly formed Oath while Marissa Mayer, the Yahoo CEO will likely not going to be part of the leadership team of the new company.
Yahoo’s share price appreciated by $5.16 after the acquisition vote on Thursday, to close at $55.71. That will raise the severance package to Yahoo employees who would be laid off.
Based on the increased stock price, Ms. Mayer will depart with $264 million for her five years of work at Yahoo, up from $239 million last Friday.
At the close of the deal by next week, the remnant of Yahoo will be christened Altaba Inc. which will be a holding company for the proceeds from the sale as well as Yahoo’s significant stock holdings in Alibaba Group and Yahoo Japan.