Once the troubled deal culminates, Verizon plans to lay off 15% of the combined workforce of AOL and Yahoo. According to sources, layoffs is coming next where Verizon would slash around 2,100 jobs from AOL and Yahoo of the combined entity “Oath”.
Verizon To Lay Off 2,100 People Post Finalizing Acquisition Of Yahoo’s Internet Business
1. Verizon To Buy Yahoo’s Core Internet Assets For $4.48 Billion
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On Thursday, Yahoo shareholders voted to approve a revised agreement for Verizon to buy Yahoo’s core Internet assets for $4.48 billion. According to both the companies the deal is expected to close this Tuesday. The final vote came nearly a year after the original acquisition was announced.
2. “Oath”
Post the acquisition is complete, Yahoo and AOL would form a new digital company under Verizon which would be called Oath. AOL spokesperson said in a statement,
Oath’s strategy is to lead the global brand space,” he added “Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy.”
3. Leadership Team @ Oath
Sources confirm, AOL CEO Tim Armstrong would oversee Oath. Yahoo CEO Marissa Mayer will not be part of the leadership team.
4. layoffs Coming Next
According to sources, Verizon expects to slash as many as 2,100 employees from the combined venture, or about 15% of the staff. The layoffs are expected to be announced soon after the deal closes. This action is not unexpected, given that both companies have a lot of redundancies, including in human resources, finance, marketing and general administration.
In February following Yahoo’s disclosures of two massive security breaches affecting more than one billion users, Verizon agreed to cut the deal price by $350 million.
Once the deal is closed next week, whatever remains of Yahoo would be renamed as Altaba Inc. It will effectively serve as a holding company for Yahoo’s large stake in Alibaba.
Date: June 14, 2017