Verizon today said it has completed its $4.48 billion acquisition of Yahoo's operating business and formed a new subsidiary called "Oath" that includes both Yahoo and AOL.
Oath is "a diverse house of more than 50 media and technology brands that engages more than a billion people around the world," Verizon's announcement said. (Yahoo alone has previously said it already had more than 1 billion monthly users.)
Advertising is key to Verizon's plans for Oath. Since Verizon is a home Internet provider and the largest wireless carrier in the US, its access to Internet subscribers' browsing histories could help boost the Yahoo/AOL advertising business. The Republican-led Congress and President Donald Trump recently wiped out rules that would have made it harder for ISPs to use their customers' browsing history to serve personalized advertising.
Yahoo stockholders today approved the terms of the acquisition of the company's Internet business by Verizon for $4.48 billion. What once was Yahoo's primary business will be merged with Verizon's AOL unit to create a business to be called "Oath."
With that deal on final approach, many Yahoo and AOL employees may be uttering oaths of their own as Verizon prepares to purge about 2,100 workers from the combined organization, according to a Wall Street Journal report. That amounts to about 15 percent of the combined workforce of the two businesses. The layoffs are expected to be spread evenly across AOL and Yahoo staff, and few of the cuts are expected to affect engineers and product teams.
The layoffs mark the latest series of cuts for both Yahoo and AOL, which have both been shedding employees in anticipation of the deal. AOL cut about 500 employees late last year, and Yahoo is down from about 14,000 employees in 2010 to roughly 8,100 as of the end of last year.