Verizon closed its $4.48 billion purchase of Yahoo’s core business Tuesday, finalizing a deal mired by two massive hacks affecting more than 1 billion Yahoo accounts and marking the latest play by telecoms to challenge Silicon Valley’s dominance in online advertising.
Under a newly bolstered Verizon, Yahoo and AOL will combine as part of a new media and technology company called Oath. The sale of Yahoo was first announced last summer, with a $4.8 billion price tag. But just months later, the company disclosed a series of data breaches that compromised the personal information of potentially hundreds of millions of people. Following the breaches, Yahoo and Verizon eventually agreed to discount the purchase price by $350 million.
As part of the finalized deal, Yahoo chief executive Marissa Mayer will resign with a “golden parachute” worth just over $23 million in cash, equity and benefits, according to an SEC filing. She served at the company’s helm since 2012.
And more than 2,000 employees will get laid off as Yahoo and AOL reorganize under Verizon’s management, according to a person familiar with the matter.
SOURCE: Hamza Shaban
The Washington Post