After more than two decades, Yahoo’s time as an independent company has finally come to an end.
Verizon officially completed its deal to acquire Yahoo’s core Internet assets for $4.48 billion after months of uncertainty about the deal, both companies announced today.
Yahoo CEO Marissa Mayer is resigning from the company. She will receive a $23 million severance package, according to 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.”
“Verizon wishes Mayer well in her future endeavors,” the company said in a statement.
Yahoo and AOL will form a new digital media company under Verizon called Oath. Verizon’s goal is to use Yahoo’s enormous reach to compete with the likes of Facebook and Google for online advertising.
Verizon expects to cut as many as 2,100 employees from the combined venture, or about 15% of the staff, according to a source familiar with the matter.
What remains of Yahoo will be renamed Altaba Inc. It will effectively serve as a holding company for Yahoo’s large stake in Alibaba, the Chinese e-commerce company.
The deal’s close comes nearly a year after the acquisition was first announced. The acquisition was thrown into doubt after Yahoo disclosed two massive security breaches affecting more than one billion users.
Verizon eventually agreed to move forward after cutting the price tag by $350 million and requiring Yahoo to split the cost of any legal liabilities resulting from the breaches.