Verizon is planning to merge AOL and Yahoo into a single media division under the name Oath’
AOL CEO Tim Armstrong revealed the new brand name in a tweet. The new unit will oversee over 20 brands, expecting to reach 1.3 billion users and $7bn in sales.
AOL said in a statement, “In the summer of 2017, you can bet we will be launching one of the most disruptive brand companies in digital.”
Verizon is acquiring Yahoo’s assets under a $4.48bn transaction, which is expected to be completed by the end of June this year.
Yahoo’s cash, its shares in Alibaba Group, its shares in Yahoo Japan, or the company’s non-core patents are not included in the sale.
Verizon acquired AOL in 2015 for $4.4bn to support its LTE wireless video and OTT strategy, as well as its IoT platforms.
After completion of the sale, the remaining parts of Yahoo will be renamed Altaba.
The company has named board member Thomas McInerney as the chief of Altaba. McInerney has served as a member of Yahoo’s board since April 2012.
Yahoo and Verizon agreed to reduce the price of the acquisition by $350m following two massive cyberattacks.
Under the terms of the new deal, both companies will split the cost of some lawsuits arising from the data breaches, announced last year.
There is no clarity on specifics on how Oath will be structured and if Verizon will continue to use the AOL and Verizon names in the future.
Oath will reportedly serve as a holding company for Yahoo News, Yahoo Mail, Yahoo Finance, and other services with the Yahoo name, as well as house the AOL-owned publications.