After more than a year of negotiations, it's finally done. Verizon has purchased Yahoo for $4.5 billion, and Yahoo CEO Marissa Mayer has resigned from the company.
Mayer joined Yahoo in 2012 at a time when the once-mighty tech company was on its last legs. Increased competition from the likes of Google, especially in the areas of search and email, slowly eroded Yahoo's dominance in the market.
Mayer attempted to turn things around, but, by the time she was brought on, there was little that could be done. Reports indicate that Mayer tried to rebrand the company and solicit new ideas, but it simply wasn't enough.
For its part, Verizon has released a statement wishing Mayer well in her future endeavors.
"Given the inherent changes to Marissa Mayer's role with Yahoo resulting from the closing of the transaction, Mayer has chosen to resign from Yahoo," said a Verizon spokesperson. Verizon wishes Mayer well in her future endeavors."
The End Of Yahoo And The Beginning of Oath
Regardless of one's opinion on Mayer's tenure, her departure marks the end of an era. While it is a shadow of its former self, Yahoo is still one of the internet's defining companies and paved the way for Google and many others that would follow.
Verizon's Marni Walden has said that the acquisition of Yahoo represents an important step in Verizon's plans for digital media and "will create exciting new ways to captivate audiences across the globe."
Beyond Walden's statements, Verizon's plans for Oath aren't clear, but the expansion into digital media is likely an attempt to "future proof" its brand. While the vast majority of Americans continue to buy phones from carriers — and Verizon is the largest of them — the market for unlocked smartphones is growing. Verizon's plans with Oath are likely an attempt to diversify the company to ensure they it doesn't suffer Yahoo's fate a few decades down the line.
Verizon owns a number of tech and media brands such as Huffington Post as well as Yahoo's associated brands such as Tumblr. The fate of these individual brands is unknown, but it is likely that Verizon will leave the more popular ones as is.
While this deal may bode well for Verizon, it will represent a problem for about 15 percent of Yahoo's workforce as they will be losing their jobs. As part of the restructuring program, Verizon plans to cut 2,000 jobs.