Published: Sun, June 18, 2017
Economy | By Melissa Porter

Yahoo Esports to shut down as Verizon deal done

Yahoo Esports to shut down as Verizon deal done

With Yahoo getting acquired by Verizon, Marissa Mayer has made a decision to end her stint with the company as the President and CEO.

The company also said it expected to save over US$1 billion in operating costs through 2020 as a result of the Yahoo deal, which closed on Tuesday. But just months later, the company disclosed a series of data breaches that compromised the personal information of potentially hundreds of millions of people. Verizon-subsidiary AOL will merge with Yahoo and operate as media company Oath. Those companies will belong to the newly formed company called Altaba.

As many as 2,100 employees, or about 15 percent of the staff, will be cut from the combined venture, according to a source familiar with the plans. The two companies had then reportedly agreed to change the final acquisition price to $350 million less than the original offer of about $4.8 billion.

As of Friday June 16, Yahoo Esports will close its doors and no longer be updated.

Oath plans to use Yahoo's reach to compete with Google and Facebook for online advertising.

For all the latest news from the wireless networking and services sector, check out our dedicated mobile content channel here on Light Reading.

Analyst Scott Kessler of CFRA Research said Mayer can rightfully highlight the accomplishments of Yahoo under her leadership, but pointed her final message to workers was not the overall picture.

After more than two decades, Yahoo's time as an independent company has finally come to an end.

Meanwhile, Women in Technology International president David Leighton said Mayer's tenure as Yahoo's chief executive was subjected to scrutiny by the media, analysts and investors, and pointed much of the attacks arose because of her gender. By comparison, Google's revenue previous year totaled $73 billion, after subtracting ad commissions.

Needless to say, the comment soon created a lot of buzz with many speculating how the ex-CEO seemed to be glad to be free from Yahoo.

Yahoo's stock performance is the main reason most shareholders haven't complained too loudly about Mayer's lavish compensation package.

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