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Once an internet icon Yahoo has reached the end of the way

After more than two decades, Yahoo's as we know it is coming to an end.

Verizon has officially completed its deal to acquire Yahoo's core Internet assets for $4.48 billion after months of uncertainty, both companies announced Tuesday.

Yahoo CEO Marissa Mayer is resigning from the company and will receive a $23 million severance package, according to the company.

"Given the inherent changes to my role, I'll be leaving the company," Mayer wrote in an email to the company. "However, I want all of you to know that I'm brimming with nostalgia, gratitude and optimism."

"Verizon wishes Mayer well in her future endeavors," the company said in a statement.

Yahoo and AOL will form a new digital media company under Verizon called Oath. Verizon's goal is to use Yahoo's massive reach to compete with Facebook and Google for online advertising.

Verizon expects to cut as many as 2,100 employees from the combined venture, or about 15% of the staff, according to a source familiar with the matter.

What remains of Yahoo will be renamed Altaba Inc. It will effectively serve as a holding company for Yahoo's large stake in Alibaba, the Chinese e-commerce company.

The deal's close comes nearly a year after the acquisition was first announced. The acquisition was thrown into doubt after Yahoo disclosed two massive security breaches affecting more than one billion users.

Verizon eventually agreed to move forward after cutting the price tag by $350 million and requiring Yahoo to split the cost of any legal liabilities resulting from the breaches.

Under Mayer, Yahoo made one last push to prove it could be more than a fading Internet pioneer.

Mayer acquired dozens of startups for talent to compete with mobile apps. She also hired big name media personalities like Katie Couric and acquired Tumblr to reach a younger demographic. But these costly efforts did little to turnaround Yahoo's business.

"I'm really sad to see the end of Yahoo as an independent company," says Tapan Bhat, a former senior vice president at Yahoo. "The turmoil of the last few years has obscured the value that Yahoo provided from the earliest days of the web to the latter part of the first decade of the '00s."

 

 

 

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