Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud

    Big Job Cuts Coming after $4.48 Billion Verizon-Yahoo Deal Closes

    By
    Jaikumar Vijayan
    -
    June 9, 2017
    Share
    Facebook
    Twitter
    Linkedin
      The Long and Winding Road From Yahoo to Altaba

      With Verizon’s acquisition of Yahoo core businesses set to close June 13, the focus now is on how effectively the telecommunications giant will leverage its purchase to accelerate revenues in the digital advertising space.

      Yahoo shareholders this week formally approved the previously announced sale to Verizon for  $4.48 billion. The figure is $350 million less than the $4.83 billion Verizon had originally offered when it first announced plans to buy Yahoo last July. Verizon negotiated the lower amount after Yahoo disclosure two separate massive data breaches in 2016 and earlier this year.

      When the deal is finalized next week, one of Verizon’s first actions will reportedly be to slash about 2,100 jobs across Yahoo and its current web property AOL, which is Verizon unit with which it will integrate Yahoo. The reductions represent about 15 percent of the nearly 14,000 people that Yahoo and AOL currently employ and will apparently come mainly from redundant functions such as finance, HR, marketing and administration.

      The reported layoffs are no real surprise, says Charles King, principal analyst at Pund-IT research. “The similarities between the AOL and Yahoo properties mean there are a lot of redundant positions,” he says. “I expect the marketing and sales organizations to take the brunt of the reductions, with Yahoo personnel suffering the most losses.”

      Verizon’s purchase gives the company Yahoo’s core operational assets such as its advertising, search, mobile and content businesses. Verizon Communications’ chairman and CEO Lowell McAdam, has previously said he wants to use the Yahoo and AOL purchases to position Verizon as a global mobile media company.

      Verizon will merge Yahoo’s core businesses with AOL’s, which the telecommunications company acquired in 2015 for $4.4 billion. The merged entity is called Oath and will be led by AOL CEO Tim Armstrong.

      The combined AOL and Yahoo operation has more than 25 brands between them. From AOL’s side they include The Huffington Post, TechCrunch, Engadget and ONE by AOL while Yahoo brings Yahoo branded content in areas like finance, news and sports as well an a mobile apps analytics service and a native and search advertising capability. The company’s email service currently claims over 225 million active users monthly.

      Through its acquisitions Verizon’s goal is to try and put itself in a better position to try and grab a bigger share of the online advertising dollars currently being hogged almost exclusively by Google and to a somewhat lesser extent, Facebook.

      King says Yahoo and AOL’s combined user base could prove a big opportunity for Verizon. “AOL and Yahoo continue to support tens of millions of consumer and small business customers,” King said. “Those should be valuable audiences for tailored advertising and new service development.”

      Verizon’s purchase does not include Yahoo’s 15 percent share in China’s Alibaba online marketplace. That stake is currently estimated to be worth well north of $30 billion. Neither does it include Yahoo’s 35.5 percent stake in Yahoo Japan, which is estimated to be worth another $9 billion.

      Those shares will now reside with Altaba, the new name for the surviving portion of Yahoo after the transaction is completed next week. Altaba will become a holding company for Yahoo’s shares in Alibaba and Yahoo Japan shares.

      Jaikumar Vijayan
      Vijayan is an award-winning independent journalist and tech content creation specialist covering data security and privacy, business intelligence, big data and data analytics.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×