Verizon acquires Yahoo; to shed significant portion of its workforce

The new deal will see Yahoo and AOL, acquired by Verizon two years earlier, absorbed into a new subsidiary called Oath.

Internet pioneer Yahoo is officially no more, as Verizon’s acquisition of the US company was completed on June 13.

Negotiations of the deal closed at nearly US$4.5 billion.

Verizon said it has absorbed both Yahoo and AOL, another early internet company it acquired two years ago, into a new subsidiary called Oath.

The synergy of both companies globally will reportedly see Verizon lay off at least 15% of the combined Yahoo and AOL workforce, or around 2,000 employees.

Yahoo has also changed its trading name to Altaba Inc.

Following the sale, its remaining assets consist of an approximately 15% equity stake in Alibaba Group Holding Limited; an approximately 36% equity stake in Yahoo Japan Corporation; and other minor investments. 

Yahoo’s President and CEO Marissa Myer, who has led the company since 2012, also resigned from her post the same day that the agreement was signed.

"Given the inherent changes to my role, I'll be leaving the company,” she wrote in a blog entry.

Myer also thanked employees in her post. She said:

“As I look back on these achievements, I want to sincerely thank every single Yahoo employee, past and present, for your contributions both large and small. I’m tremendously grateful for all of the hard work and the many sacrifices you’ve made.

“We always endeavoured to do the right thing for our users, advertisers, shareholders, and fellow Yahoos. This has required the most impressive displays of teamwork, innovation, and resilience I’ve ever seen, and working with you has made my time as CEO nothing short of a privilege.”

Former AOL CEO Tim Armstrong has been tapped to lead the new Oath unit. Oath’s core businesses will be in digital media, online advertising, services and software. 

Click here for more HRM News
HR Talent Ladder - Standard Chartered Bank, Qualys and more
HRM Asia - 22 Feb 2018
Here are this week's latest HR appointments from across the region.
Why Ikea's HR decided to reinforce its "Swedishness"
Kelvin Ong - 22 Feb 2018
When Ikea underwent an HR refresh in 2016, the idea was to align every part of the organisation with its humble beginnings.
Ten hiring trends to watch
HRM Asia - 21 Feb 2018
From social recruitment to augmented reality, these latest tools will help hiring managers to attain the best talent.
Japan looking to grow worker pool amid shortages
- 22 Feb 2018
Thanks to a rapidly ageing population, Japan introducing more initiatives to expand its workforce.
Artificial intelligence to drive job creation across Asia
Kelvin Ong - 21 Feb 2018
The digital economy is set to form S$1.35 trillion of Asia's GDP by 2021, creating high-value jobs in the process.
HR under fire at Lululemon
Kelvin Ong - 21 Feb 2018
The company's HR department had turned a blind eye to inappropriate relations between senior leaders and staff, former employees have alleged