Yahoo! Inc. (NASDAQ: YHOO) is no longer an independent company. The company has completed the sale of its operating business to Verizon Communications, Inc. (NYSE: VZ) for a total sum of about $4.48 billion. Yahoo’s operating business will merge AOL, and the new combined digital media company under will be names Oath. The rest of Yahoo will be named "Altaba Inc." as soon as June 16, 2017. Altaba will function as a holding company for Yahoo's 15% stake in Alibaba Group Holding Ltd (NYSE: BABA).
Verizon's goal, and the main incentive for the acquisition is to monetize on Yahoo's extensive reach, through which it hopes to compete against tech giants such Facebook Inc. (NASDAQ: FB) and Alphabet Inc. (NASDAQ: GOOGL) for online advertising.
Marni Walden, Verizon president of Media and Telematics said in a statement, “The close of this transaction represents a critical step in growing the global scale needed for our digital media company… The combined set of assets across Verizon and Oath, from VR to AI, 5G to IoT, from content partnerships to originals, will create exciting new ways to captivate audiences across the globe.”
Major changes are about to take place, and Yahoo CEO Marissa Mayer is resigning from the company. Mayer will receive a $23 million severance package, as was reported in an earlier company filing.
"Given the inherent changes to my role, I'll be leaving the company," Mayer wrote in an email to the company. "However, I want all of you to know that I'm brimming with nostalgia, gratitude and optimism."