Yahoo, one of a select few companies considered to have founded the internet as we know it, has officially been bought by Verizon for $4.48 billion. The purchase marks the end of an era, as Verizon plans to combine the tech giant with AOL, consolidating them into a new entity called Oath.
According to a number of reports, Oath is set to be headed by Tim Armstrong, most well known as the chief executive of AOL; Yahoo‘s chief executive Marissa Mayer will not be joining the company – so far, it isn’t known what Ms. Mayer plans to do after the sale. In a statement, Mr. Armstrong said that Oath was looking forward to the future, saying that the company was set to focus on consumer media. In Mr. Armstrong’s words:
“Now that the deal is closed, we are excited to set our focus on being the best company for consumer media, and the best partner to our advertising, content and publisher partners.”
Oath has about 1.3 billion users who visit at least once a month, and Verizon hopes to use its range of content and create new forms of advertising to attract more viewers and marketers to the platform. The company also intends to cut costs, with plans to lay off about 2,100 people, or about 15 percent of Oath’s staff. It’s currently not known how many of Yahoo’s staff will be brought on-board to the company, and how much of Oath’s layoffs will be split among the companies current staff and Yahoo’s/AOL’s current staff.
The purchase follows a vote on June 8 among Yahoo’s shareholders on whether or not the company should be sold to Verizon; in the weeks leading up to the vote, it was largely expected that it would be an overwhelming yes. The move also follows five years of Marissa Mayer trying – unsuccessfully – to restore the internet pioneer to the position it once was as a global force.