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Verizon to Create “Oath” After Buying Yahoo

Verizon logo on a building

According to a Monday statement, Verizon Communications is going to create a brand new company and name it Oath. This is going to happen right after it will complete the acquisition deal to buy Yahoo for $4,5 billion. It will then unite the internet company with AOL, under the brand of Oath. Verizon said that both Yahoo and AOL will most likely continue to function, but the company refused to offer any more details on the way this will be done.

Oath to manage more brands

According to a tweet from Tim Armstrong, AOL’s top executive, the new Oath company is going to manage lots of other brands too. More than 20, if we are to believe what he said. As for Verizon, its idea is to use the powerful AOL and Yahoo combination to sell more digital ads. Both of those companies have not had the best time lately, and have been going through serious struggles on their own. This is probably why Verizon decided to take this path.

After entire years of trying to get back on the financial track, Yahoo agreed the deal with Verizon. It initially proposed to sell its online operations for $4,8 billion. However, after two very large hacks affected about 1 billion user accounts and stole personal information from them, the company decided to cut the price.

Yahoo’s own problems

Many considered those two breaches the largest in the history of technology. Also, it raised concerns about the people’s trust in the company and, subsequently, Yahoo’s future. Until June 30, Verizon wants to take over Yahoo’s online operations. As for Yahoo’s cash and lucrative stakes which are in the Asian companies called Alibaba Group and Yahoo Japan, those will go under the control of a new company called Altaba.

After the recent issues which Yahoo struggled with, many experts began saying that people might slowly give up on the internet company. This could mean less money from ads because there will be nobody to see them anymore. So, there is a huge financial problem which Yahoo might struggle with. However, now that Verizon closed the deal to acquire it and AOL, things might change for the better. It depends on how the new company Oath will handle the situation. Also, if it will manage to make Yahoo trustworthy again.

Image source: cdn.bgr

About Donna Griggs

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