Verizon slashes value of assets by $4.6 bn

December 11, 2018
The initiative to combine former AOL assets Yahoo Finance with HuffPost under the "Oath" banner has failed to draw the
The initiative to combine former AOL assets Yahoo Finance with HuffPost under the "Oath" banner has failed to draw the influx of advertisers Verizon had expected

Verizon announced Tuesday that it will slash $4.6 billion in value from assets purchased from Yahoo because of disappointing performance.

Verizon had argued that combining Yahoo Finance and Yahoo Mail with HuffPost and other AOL would draw advertisers and boost value.

But the assets, which been combined into a company called "Oath" instead have "experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings," Verizon said in a securities filing.

The competitive pressures facing Oath "are expected to continue and have resulted in a loss of market position to our competitors in the digital advertising business," Verizon added.

As a result, Verizon said the "fair value" of the assets acquired in 2017, needed to be reduced $4.6 billion.

The comes a day after the company announced 10,400 employees would be leaving early next year in a voluntary buyout program as Verizon reorganizes to position itself for the release of new 5G phones.

The said it will take a one-time charge of $1.8 to $2.1 billion to cover the cost of severance payments, which include up to 60 months' pay.

Verizon also plans to take a third charge for $2.1 billion for a reorganization of its legal entities associated with the wireless business.

Shares of Verizon rose 0.9 percent to $58.82 in midday trading.

Explore further: Verizon cuts 10,000 workers through buyouts as part of restructuring

Related Stories

Yahoo signs off, completes sale to Verizon

June 13, 2017

Internet pioneer Yahoo ended its two-decade run as an independent company on Tuesday, completing the sale of its core online assets to telecom giant Verizon.

Recommended for you

Two new planets discovered using artificial intelligence

March 26, 2019

Astronomers at The University of Texas at Austin, in partnership with Google, have used artificial intelligence (AI) to uncover two more hidden planets in the Kepler space telescope archive. The technique shows promise for ...

Infertility's roots in DNA packaging

March 26, 2019

Pathological infertility is a condition affecting roughly 7 percent of human males, and among those afflicted, 10 to 15 percent are thought to have a genetic cause. However, pinpointing the precise genes responsible for the ...

Facebook is free, but should it count toward GDP anyway?

March 26, 2019

For several decades, gross domestic product (GDP), a sum of the value of purchased goods, has been a ubiquitous yardstick of economic activity. More recently, some observers have suggested that GDP falls short because it ...

Droughts could hit aging power plants hard

March 26, 2019

Older power plants with once-through cooling systems generate about a third of all U.S. electricity, but their future generating capacity will be undercut by droughts and rising water temperatures linked to climate change. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.