On Tuesday, Chief Executive Officer Mayer exited the company with a $23-million payout after leading United States telecom Verizon completed a $4.48-billion acquisition of Yahoo's core Internet business. Verizon sees the acquisition of media content as a way to expand beyond its core wireless business.
During his tenure, Yahoo experienced one of the largest data breaches in history, with at least 500m accounts compromised following two major hacks in 2013 and 2014 - this nearly saw the Verizon takeover fall apart. Following the breaches, Yahoo and Verizon eventually agreed to discount the purchase price by $350 million. Since Verizon is a home Internet provider and the largest wireless carrier in the U.S., its access to Internet subscribers' browsing histories could help boost the Yahoo/AOL advertising business.
Yahoo's assets have been blended with Verizon's's AOL to forge a media subsidiary it calls Oath, said Deadline. Verizon says that this was Mayer's choice. As had been expected, Yahoo CEO Marissa Mayer has resigned.More news: Trump's attorney general to testify in public on Russian Federation
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Advertising is key to Verizon's plans for Oath.
From Verizon's point of view, the deal is purely driven by data prospects from Yahoo-owned websites which have more than 200 million unique monthly visitors.
Its remaining directors are Eric K. Brandt (Chairman), Tor R. Braham, Catherine J. Friedman and Thomas J. McInerney, who will become its CEO. Instead, Verizon will combine it with AOL under a different brand, called Oath, which it describes as a "diverse house of more than 50 media and technology brands that engages more than a billion people around the world". Armstrong has been leading the integration between the two companies since the transaction was announced.
FILE - In this January 7, 2014, file photo, Yahoo president and CEO Marissa Mayer speaks during the International Consumer Electronics Show in Las Vegas.