Verizon Communications, Inc. (NYSE: VZ) is planning to complete to $4.48 billion acquisition of Yahoo! Inc.'s (NASDAQ: YHOO) core assets in coming week, and as a result, 2,000 jobs are estimated to be cut. Out of the 14,000 people who work at AOL and Yahoo, 15% of staff from both companies are expected to be reduced. A trusted source from Reuters has states that “many of the jobs are in California and some are outside the United States.
Verizon plans to strengthen their AOL unit, which they acquired in 2015 for $4.4 billion, by combining it with Yahoo’s search, email/messenger, and advertising technology. This change marks the end of Yahoo as a standalone company, which was once even valued at more than 100 billion dollars.
Verizon is planning on re-branding the two web based services to create and new venture called Oath, which will be led by AOL’s Tim Armstrong. They will have the capability to gather data from more than 200 million monthly visitors from Yahoo, 150 million monthly visitors from AOL, and 100 wireless subscribers from Verizon. Verizon predicts that the new source of revenue outside the wireless market may be mobile video and advertising.