The new entity, Oath is expected to boost Verizon’s presence in the mobile and online video space
Telecom Behemoth-Verizon Communications Inc. completed its $4.48 billion acquisition of the operating business of Yahoo!Inc. and amalgamated it with its existing AOL business under a new subsidiary, Oath.
Marni Walden, President of Media and Telematics, Verizon, said, “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.”
The deal comes two years after Verizon acquired the global ad tech firm- AOL for $4.4 billion in May 2015, gaining a robust programmatic and video advertising platform.
Oath begins operation with 50 media and tech brands
Oath has begun operations in digital and mobile advertising with 50 media and technology brands that engage more than a billion audiences globally. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Flickr, BUILD Studios, Yahoo Finance, Yahoo Mail, among others.
Oath’s Leadership team will be headed by Tim Armstrong
Tim Armstrong, former Chief of AOL, will now head Oath, which is part of Verizon’s Media and Telematics organization. He has been leading integration planning teams since the Yahoo transaction was announced in July 2016. In April, Armstrong announced a leadership team to run advertising platforms under Verizon. AOL president and former Yahoo executive- Tim Mahlman will head up the advertising technology, while Yahoo engineering pro Atte Lahtiranta will lead tech, and Verizon’s Ralf Jacob will helm digital media.
Armstrong said, “We’re building the future of brands using a powerful technology, trusted content and differentiated data. We have dominating consumer brands in news, sports, finance, tech, and entertainment and lifestyle coupled with our market-leading advertising technology platforms. Now that the deal is closed, we are excited to set our focus on being the best company for consumer media, and the best partner to our advertising, content and publisher partners.”
Armstrong is also leading efforts to continue building open advertising technology solutions, with brands such as ONE by AOL and BrightRoll that span across mobile, video, search, native and programmatic ads.
Mayer Steps down
The President and CEO of Yahoo, Marissa Mayer has chosen to step down. As per SEC filings, Mayer could receive a more than $23 million “golden parachute” payment, including more than $3 million in cash and nearly $20 million in equity, for her exit from the company.
New York-based, Verizon generated nearly $126 billion in 2016 revenues and operates America’s most reliable wireless network, with 113.9 million retail connections nationwide.