Verizon Communications Inc. (NYSE, Nasdaq: VZ) today completed its acquisition of the operating business of Yahoo! Inc. (YHOO), and that Yahoo! She will receive an estimated $23 million golden parachute package, according to documents filed with the U.S. Securities and Exchange Commission.
On Tuesday, Chief Executive Officer Mayer exited the company with a $23-million payout after leading USA telecom Verizon completed a $4.48-billion acquisition of Yahoo's core Internet business.
Tim Armstrong, former CEO of AOL, is now CEO of Oath, which is part of Verizon's media and telematics organisation. Yahoo, which was once worth more than $100 billion, is a tech pioneer with content brands in categories such as sports, finance and news.
Tuesday's sale ends Yahoo's 21-year history as a publicly traded company.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York City, has a diverse workforce of 161,000 and generated almost $126 billion in 2016 revenues. The Yahoo stub has been renamed Altaba, a holding company. It also ends the almost five-year reign of Yahoo CEO Marissa Mayer, who isn't joining Verizon.
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.
Verizon is counting on the combination of Yahoo and AOL to build a strong third alternative in a rapidly growing digital advertising market that is now dominated by Google and Facebook.
Verizon expects to cut about 15 per cent of the workforce of the new Oath organization, representing the elimination of about 2,000 jobs. In an email to the company's employees, she added, "I want all of you to know that I'm brimming with nostalgia, gratitude, and optimism". While Yahoo's revenue was $5.1 billion, Verizon may not be keeping all of its web assets intact. Yahoo board member Thomas McInerney will become its CEO.