Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Business Leaders  >  All news

Business Leaders

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 
HomeAll newsMost read newsBusiness Leaders Biography 
Birthday : 05/30/1975
Place of birth : Wausau - USA
Linked companies : Wal-Mart Stores Inc
Biography : Ms. Marissa A. Mayer is on the Board of Directors at AliphCom Corp., Wal-Mart Stores, Inc., Cooper-H

Yahoo Passes to AOL's Armstrong -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/14/2017 | 08:48am CEST

New leader in place as Marissa Mayer resigns and Verizon completes acquisition

By Lara O'Reilly 

AOL chief executive and veteran ad salesman Tim Armstrong is ready to build a new empire, while Yahoo boss Marissa Mayer is leaving hers behind.

Verizon Communications announced Tuesday it had completed its $4.5 billion acquisition of Yahoo's core internet assets.

Ms. Mayer has opted to resign from Yahoo given the changes to her role following the close of the acquisition, the company said.

Yahoo will be merged with AOL, which Verizon bought for $4.4 billion in 2015, to create a new online media and advertising subsidiary called Oath, housing brands such as HuffPost, TechCrunch, Yahoo Finance, Tumblr and the pair's stack of advertising technology solutions.

The two companies will benefit from the data Verizon has on its subscribers, which will improve targeting and measurement for marketers looking for online advertising alternatives to Google and Facebook.

Distribution will also be a factor: Soon, some of Oath's content brands will be automatically available on the "decktop" of Verizon subscribers' phones through its AppFlash app, for example. Verizon's go90 mobile video app, will also become more integrated with Oath's content properties. And entirely new mobile content brands are set to launch before the end of the year, created by Oath's internal Factory unit.

Mr. Armstrong, who is now Oath's CEO, said: "The entire company is centering around brand building for mobile and building our content brands."

Mr. Armstrong declined to comment on Ms. Mayer's "decision process" behind her move, beyond referencing that the pair had planned its organizational structure together as they worked to integrate one public company inside another.

Ms. Mayer was widely expected to be leaving, despite saying last year that she planned to stick around. Her name was absent from the leadership team Mr. Armstrong listed in a memo to staff, which was reported by Recode in April.

"Given the inherent changes to my role, I'll be leaving the company," Ms. Mayer said in a note to employees, which she posted on Tumblr. "Looking back on my time at Yahoo, we have confronted seemingly insurmountable business challenges, along with many surprise twists and turns."

Mr. Armstrong confirmed reports that the company plans to lay off around 15% of staff, or 2,100 of the roughly 14,000 people in its combined workforce. The job cuts will mainly affect those in back office functions, where there are duplicate roles and teams.

Mr. Armstrong now has a job to maintain morale among the remaining team, but he said his staff are "excited about the differentiated strategy."

The acquisition was first announced in July last year, but was hampered after Yahoo then announced two separate hacking attacks that took place in 2013 and 2014, which led to 1.5 billion user accounts being compromised. After the disclosure of the data breaches, Verizon and Yahoo agreed to shave $350 million from the original offer price. The final price tag was a marked drop for one of the early web pioneers, which once had a market capitalization of more than $125 billion during the peak of the dot-com boom.

Mr. Armstrong had previously publicly stated that he wanted Oath to reach 2 billion consumers, up from around 1 billion currently, by 2020. He also previously aimed for Oath to boost revenue to more than $10 billion. Mr. Armstrong has now added a small "caveat" to that time frame as the deal took longer to close than expected.

Ahead of the acquisition closing, Verizon was predicted to generate $1.5 billion in net global digital ad revenue in 2017, according to research firm eMarketer. Yahoo was estimated to generate $3.2 billion in net digital ad revenue world-wide this year. Google and Facebook dominate the online ad market, with eMarketer estimating they will generate $73.8 billion and $36.3 billion in digital ad revenue world-wide this year respectively.

Oath's brands are best known in the U.S., thanks to Yahoo and AOL's portal businesses that provided many consumers with their first access to internet services such as email.

Oath's global growth plan will be centered on a limited number of key markets to extend its audience outside the U.S., including western Europe, Japan, Taiwan and Singapore. Mr. Armstrong said he also wouldn't rule out acquisitions to help Oath achieve its targets.

Some social-media scorn was poured over Oath's corporate branding when it unexpectedly leaked through a Business Insider article in April. Mr. Armstrong quickly responded with a tweet, confirming the new name. He said that tweet earned Oath "3.5 billion media impressions" globally, which would have cost $100 million in ad placements. The company conducted a study afterward and found 70% of people were positive about the brand, 15% were neutral and 15% were negative.

Mr. Armstrong said: "The other positive thing to note on this is we didn't do this the normal way; we didn't hire consultancies [or a] branding naming agency; we basically built the entire brand ourselves internally."

Building media and tech brands is something Mr. Armstrong has form in. From co-founding a magazine in his early 20s called "Beginnings in Boston," aimed at young people starting out in their careers, he moved into sales roles at a variety of early internet companies in the 1990s. He eventually joined Google, helping grow key ad products, including AdSense and DoubleClick. Mr. Armstrong became CEO of AOL in 2009.

Ross Levinsohn, Yahoo's former interim CEO who was in the running to lead the company permanently but was replaced by Ms. Mayer in 2012, said Mr. Armstrong is well-positioned to lead Oath:

"He understands the businesses as well as anyone, is a dynamic leader and [is] well respected," Mr. Levinsohn said. "He has a well-heeled parent...if they allow him freedom, flexibility and provide more capital to acquire other businesses, then his goals are possible."

Write to Lara O'Reilly at lara.o'reilly@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news about Marissa Mayer 
06/14DJMARISSA MAYER : Yahoo Passes to AOL's Armstrong -- WSJ
06/13 MARISSA MAYER : Verizon closes Yahoo deal, Mayer steps down
04/28DJMARISSA MAYER : Yahoo CEO Marissa Mayer Earned $27.4 Million Last Year
04/26DJMARISSA MAYER : Yahoo CEO Set to Reap Big Payout -- WSJ
04/25DJMARISSA MAYER : Yahoo's Marissa Mayer to Make $186 Million From Verizon Deal
03/20DJMARISSA MAYER : Top Company News of the Day
03/18DJMARISSA MAYER : Top Company News of the Day
03/17DJMARISSA MAYER : Yahoo's Marissa Mayer Gets Reprieve From Hacking Criticism
03/14DJMARISSA MAYER : Yahoo's Mayer Gets $23 Million -- WSJ
01/10DJMARISSA MAYER : After Sale, Marissa Mayer to Leave Yahoo Board; Yahoo to Change Name to Altaba
2016DJMARISSA MAYER : After Yahoo, Marissa Mayer May Have to Wait for Another CEO Chance
2016DJMARISSA MAYER : After Yahoo, Mayer May Have to Wait for Another CEO Chance
2016DJMARISSA MAYER : Yahoo's Marissa Mayer Stumbled After Secret Truce With Prodding Investor
2016DJMARISSA MAYER : Yahoo CEO Marissa Mayer's 2015 Total Pay Valued at $36 Million
2016DJMARISSA MAYER : Yahoo Forms Board Committee to Explore Options--Update
1  2  3  4  5  6  7  8  9  10Next

Advertisement
Most Read News 
06/23DJJEFF BEZOS : Blind Faith in Bezos May Sting Investors -- WSJ
06/23 WARREN BUFFETT : 'Bailout' Buffett burnishes 'lender of last resort' image
06/27DJWARREN BUFFETT : Buffett Backs Store REIT -- WSJ
06/23 DAVID HENRY : Biggest U.S. banks clear first hurdle in Fed's annual stress tests
06/22DJR. JOHNSON : Missouri Sues Drug Firms Over Opioid Marketing -- WSJ
06/22DJJEFF BEZOS : Where Bezos Leads, Amazon Shareholders Blindly Follow
06/22 BERNARD ARNAULT : Belgium drops case against business of LVMH chief Arnault
More news

Popular Business Leaders 
Bernard Arnault Mary Barra Jeff Bezos Lloyd Blankfein Michael Bloomberg Yannick Bolloré Warren Buffett Jean-paul Clozel Gary Cohn Michael Dell Jamie Dimon Ralph Dommermuth Patrick Drahi David Einhorn Mark Fields Laurence Fink Carlos Ghosn Terry Gou David Henry Carl Icahn Michel Landel Daniel Loeb Maurice Lévy Jack Ma Marissa Mayer Lakshmi Mittal Leslie Moonves Oscar Munoz Rupert Murdoch Elon Musk Peter Nicholas Xavier Niel John Paulson Ferdinand Piëch Georges Plassat Wolfgang Porsche Giuseppe Recchi Wolfgang Reitzle Urs Rohner Wilbur Ross Charles Schwab Igor Sechin George Soros Rupert Stadler Bernard Tapie John Williamson Thomas Wilson Dieter Zetsche Mark Zuckerberg
A-Z Business Leaders