Destruction Plan for Yahoo Released

The latest step in what has been a fairly eventful acquisition of Yahoo by Verizon has been taken this week. Yahoo has released a succession plan for what to expect as the core assets are transferred over. The biggest thing in this plan is something that has been known for some time, Marissa Mayer will serve as CEO up until the transition (expected in April) and will then step down. At that point, Thomas McInerney, who is a current Yahoo board member, will step in and serve as CEO.

This is needed: Yahoo, the once-vaunted internet giant, is in shambles. Its revenue is in decline. Its shareholders are crying foul. Its prized public faces are scrambling for an exit, and the company has laid off 15 percent of its workforce. Its core business—internet search and advertising—is negatively valued. They’ve destroyed almost every company they’ve bought, and their network ad business is basically a mess.

The assets being transferred in the purchase includes the advertising network run by Yahoo. This was a very large ad network (though small compared to Google or Facebook). With millions of dollars of revenue, this is likely the most important thing that needs to go right for Verizon to have a successful transition.

Little has been said about what, if any, changes can be expected in regard to their ad agency. Long term Verizon is undoubtedly looking to integrate the ads into their main suite of services. The database of active users is also going to be transferring over, which Verizon could use as a way to directly advertise to them for other services, or continue to make money through display ads.

There are a lot of options on the table for Verizon. This is a pretty big purchase, even with the $350 million discount Verizon is getting due to the two major data hacks that Yahoo experienced.  Verizon is still paying nearly $4.5 billion for the iconic Internet company.

 

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