Tuesday, April 4, 2017

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Verizon is planning to merge AOL and Yahoo into a single media division under the name Oath AOL CEO Tim Armstrong revealed the new brand name in a tweet. The new unit will oversee over brands, expecting to reach . users and bn in sales. AOL said in a statement, ? In the summer of , you can bet we will be launching one of the most disruptive brand companies in digital. Verizon is acquiring Yahoos assets under a .bn transaction, which is expected to be completed by the end of June this year. Yahoos cash, its shares in Alibaba Group, its shares in Yahoo Japan, or the companys noncore patents are not included in the sale.

Verizon acquired AOL in for .bn to support its LTE wireless video and OTT strategy, as well as its IoT platforms 

After completion of the sale, the remaining parts of Yahoo will be renamed Altaba. The company has named board member Thomas McInerney as the chief of Altaba. McInerney has served as a member of Yahoos board since April . 

Yahoo and Verizon agreed to reduce the price of the acquisition by m following two massive cyberattacks. 

Under the terms of the new deal, both companies will split the cost of some lawsuits arising from the data breaches, announced last year. 

There is no clarity on specifics on how Oath will be structured and if Verizon will continue to use the AOL and Verizon names in the future. 

Oath will reportedly serve as a holding company for Yahoo News, Yahoo Mail, Yahoo Finance, and other services with the Yahoo name, as well as house the AOLowned publications.
 

 

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