Verizon-Yahoo deal, a grab for digital-ad cash, approved

Robyn Ryan
June 9, 2017

More than 2,000 jobs across AOL and Yahoo jobs will be cut when the corporate merger between Verizon and Yahoo closes, according to a report from TechCrunch. About 14,000 people work at AOL and Yahoo. Numerous jobs are in California and some are outside the United States, said the source, who asked not to be identified because the matter is not yet public.

Yahoo shareholders approved the $4.5 billion transaction Thursday.

Verizon will combine its Yahoo unit with its AOL unit, which it acquired in 2015 for $4.4 billion. In addition, Verizon has purchased a 24.5% stake in AwesomenessTV, which is controlled by DreamWorks, and has invested in its Go90 mobile video service that streams original content, including the popular teen drama "Guidance". But it was not able to overcome a declining user base in recent years caused by increasing competition from those companies, and it was forced to sell after being subjected to two of the biggest cybersecurity attacks in history.

Verizon's plans to acquire Yahoo - along with AOL - were announced nearly a year ago, but it took almost a year for the details to be worked out.

"Oath's strategy is to lead the global brand space", an AOL spokesperson said in a statement to CNN Tech. Yahoo owns a 15% stake in Alibaba.

AOL's chief executive, Tim Armstrong, will lead Oath, while current Yahoo CEO Marissa Mayer is not expected to be part of the new division.

Not all shareholders favored the sale to Verizon. In February 2016, Yahoo announced it was cutting 1,600 employees, or 15 per cent of its staff. The company expects the transaction will close on June 13, according to a press release. In September, Yahoo disclosed a 2014 breach that affected at least 500 million customer accounts.

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