Yahoo ended its two-decade run as an independent company on Tuesday, completing the sale of its core online assets to Verizon. Verison will integrate the Yahoo internet operations and AOL into a new unit called Oath, while Yahoo group now becomes a holding company called Altaba Inc.
The transaction cost Verizon Communications Inc. $4,475,800,000. The No. 1 U.S. wireless operator is rebranding AOL and Yahoo as part of a new venture called Oath, led by AOL Chief Executive Tim Armstrong. Oath's more than 50 brands include HuffPost, TechCrunch and Tumblr.
Some reports have said more than 1,000 jobs would be eliminated as a result of the merger, but statements from Yahoo and Verizon on Tuesday made no mention of any cuts.
Verizon has made no indication of how it will use the Yahoo brand but indicated it is keeping the names Yahoo Sports, Yahoo Finance, Yahoo Mail and more.
Following the sale, Yahoo Group's remaining assets consist of an approximately 15% equity stake in Alibaba Group Holding Limited; an approximately 36% equity stake in Yahoo Japan Corporation; cash, cash equivalents and marketable debt securities; certain minority investments; and Excalibur IP, LLC, which owns certain patent assets that were not core to Yahoo's operating business. The company's headquarters have been relocated to New York City and the company becomes a holding company. On Friday, it will change its name to Altaba Inc. and on Monday begin trading under the ticker symbol "AABA."
Marissa Mayer, who was unable to stem the decline of the iconic Silicon Valley company, is getting a departure package worth an estimated $186 million.