Yahoo shareholders approve sale of core business to Verizon

Posted June 09, 2017

Verizon Communications is expected to cut about 2,000 jobs when it completes its $4.48 billion acquisition of Yahoo's core assets next week, a person briefed on the matter said. There have been a few snafus along the way, notably Yahoo's data-breach scandals, but the deal is supposed to close this month.

Yahoo Chief Executive Officer Marissa Mayer agreed to the sale last year after a four-year turnaround effort failed to stem a slide in advertising revenue.

The news of Verizon's acquisition was first announced back in July but the deal is now coming to a close.

The Yahoo purchase and the pending layoffs will help bring closure to a drawn-out deal process that has damped morale at the internet pioneer, which commanded a market value of more than $125 billion at the height of the dot-com boom in early 2000. That means the remainder company, to be renamed Altaba, will become an investment vehicle reflecting the Alibaba investment when the Verizon deal closes on June 13th.

Yahoo is becoming part of a new Verizon unit called Oath that will include media content and digital services like email. Tim Armstrong, the former AOL CEO who tried unsuccessfully to merge AOL and Yahoo when they were both independent, will now be CEO of Oath.

"Consistent with what we have said since the deal was announced, we will be aligning our global organization to the strategy", AOL wrote in a statement. (NYSE:VZ), the owner of AOL, will be reducing the company's workforce after it merges with Yahoo.

With roughly 14,000 workers between AOL and Yahoo, the 2,100 positions being made "redundant" represents 15 percent of their employees, according to the TechCrunch report.