News about Verizon acquiring Yahoo, a popular search engine, news, and email hosting site, have populated headlines in recent months. Today, Verizon closed out its acquisition of Yahoo. The popular does-it-all Internet site sold for $4.48 billion, with the deal closing right on schedule.
Acquisitions and mergers are often associated with closings of departments, divisions, and firing of employees. Now-former Yahoo CEO Marissa Mayer was paid a $23 million severance package — now that’s a great way to get fired!
Verizon plans to bring together Yahoo with AOL, another one of its many subsidiaries, and form Oath. Tim Armstrong is slated to head Oath, which includes more than 50 other media brands, such as Huffington Post, TechCrunch, and Verizon Digital Media Services. Armstrong was most recently the CEO of AOL before Verizon acquired it, as well.
Yahoo used to be the number-one search engine until now-giant Google came into play. Yahoo has had its fair share of struggles, dealing with a large-scale security crisis earlier this year. Two breaches of personal, private email accounts Yahoo hosted occurred, affecting approximately 1.5 billion — with a B, not an M — accounts.
The upcoming merger of Yahoo and AOL will keep approximately 85% of current employees, cutting roughly 2,100 positions. Retaining 85% of employees is considered good for a large-scale merger such as the upcoming Oath conglomerate.
Yahoo is slated to transform into an investment firm with a new name of Altaba Inc., although the new company is not fully formed yet. This new company will hold a 15% stake in Asia-based Internet giant Alibaba, along with a 35.5% stake in Yahoo Japan.
Verizon negotiated a $550 million chunk from its $4.48 billion sale price earlier this year because of its two massive data security failures.