Verizon Communications Inc (VZ) closed the acquisition of Yahoo Inc (YHOO)’s core business. YHOO, once valued at over $100 billion, is no longer a stand-alone internet company following the deal.
The acquisition was expected to close in 2016, though it was postponed amid two serious data breaches revealed by Yahoo last year.
YHOO’s CEO Marissa Mayer is also resigning from her position. She stated in an email to employees that “given the inherent changes to my role, I’ll be leaving the company—however, I want all of you to know that I’m brimming with nostalgia, gratitude, and optimism.”
No. 1 U.S. wireless operator Verizon is merging Yahoo with AOL to form a venture named Oath, which will be led by AOL CEO Tim Armstrong. Some famous brands including Tumblr, HuffPost and TechCrunch come under Oath.
Verizon is also reportedly planning to cut 2000 jobs at its AOL and Yahoo units. The company is expected to reveal the layoffs this week.
The remaining Yahoo not purchased by Verizon will operate as a holding company, under new name Altaba Inc, which will have a 35.5 percent stake in Yahoo Japan Corp and a 15.5 percent holding in Alibaba Group Holding Ltd.
Yahoo board member Thomas McInerney will be CEO of Altaba.
Verizon (NYSE:VZ) shares slipped 1.55 percent to $46.46 in the last trading session. The 52-week range of the stock is $44.46-$56.95. VZ stock fell nearly 12 percent over the past year and declined about 13 percent so far this year. The company’s market cap is $191.43 billion and P/E ratio of 15.48.