![]() The buyouts are part of a plan to cut costs and shift investments into wireless and 5G. Verizon announced Monday that 10,400 management employees had accepted voluntary buyout deals, out of 44,000 who were eligible. Guru Gowrappan, Oath's president and former chief operating officer. He was a driving force behind Verizon's media acquisitions. In September, Oath CEO Tim Armstrong left. Verizons fourth quarter financials are going to have a pair of hefty charges due to an voluntary separation program where 10,400 employees left and a 4. This summer, Verizon replaced CEO Lowell McAdam with Hans Vestberg, the telecom company's former chief technology officer. Verizon plans to focus more on wireless technology and less on content and distribution. The Verizon media unit's poor performance led the company to make "unfavorable adjustments to Oath's financial projections" for the next five years. Facebook, Google and Amazon are sucking up ad dollars, forcing publishers to search for other streams for revenue. That's a stunning decrease in value since it formed in 2017. Oath's brand value is now worth just 200 million, according to Verizon. Verizon announced Tuesday that it would take a 4.6 billion writedown on its the media unit, which includes Yahoo and AOL. Oath "has experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings," according to a filing with the SEC Tuesday. Verizon just admitted that the value of its media brand, Oath, is essentially worthless. The telecommunications giant said the integration of Yahoo and AOL didn't meet expectations. With virtually no goodwill brand value, Oath's overall value (assets and goodwill) is now worth half of what it was a few years ago. It bought Yahoo for $4.5 billion in 2017 and AOL, which owns HuffPost, for $4.4 billion in 2015. Verizon snapped up a number of legacy media brands in recent years to create Oath. Verizon said Oath's brand was worth $4.8 billion when it last accounted for the company's goodwill valuation. ![]() ![]() Oath's brand value is now worth just $200 million, according to Verizon. Verizon announced Tuesday that it would take a $4.6 billion writedown on its the media unit, which includes Yahoo and AOL. The remainder will be out by June 2019.Verizon just admitted that the value of its media brand, Oath, is essentially worthless. ![]() According to Verizon’s filing, more than 10,000 employees will part with the company as part of a “voluntary separation program” with about half of that figure heading out the door this month. It’s about setting up for the next five to 10 years.”\Īccording to Verizon, the new valuation for Oath will spell layoffs for many of its employees. It’s really not about selling the company today. The news of Oath’s precipitous fall comes just three years after Verizon made a series of splashy media deals, including the purchase of AOL in 2015 for $4.4bn and Yahoo!, which owns the Huffington Post last year for $4.5bn.Īt the time of the AOL sale, Tim Armstrong, who was chairman of AOL and transitioned to Oath, said: “If you look forward five years, you’re going to be in a space where there are going to be massive, global-scale networks, and there’s no better partner for us to go forward with than Verizon. businesses,” Verizon said in their filing. Oath has also achieved lower than expected benefits from the integration of the Yahoo Inc. These pressures are expected to continue and have resulted in a loss of market positioning to our competitors in the digital advertising business. “Verizon’s Media business, branded Oath, has experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings. In an 8-K filing with the SEC on Tuesday, Verizon said that it was taking a $4.6 billion write-down on Oath, the media venture they launched in 2017.Īccording to the company’s filing, Verizon had previously reported the “goodwill” value of the company, which includes intangibles such as its reputation and brand value, at $4.8 billion, meaning Oath is now worth a grand total of about $200 million in Verizon’s estimation. NEW YORK (CelebrityAccess) - Telecom giant Verizon conceded on Tuesday that its media brand Oath, which includes Yahoo and AOL, was effectively worth nothing.
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