Yahoo's shareholders approved the long-standing buyout offer from Verizon today, so before long, we'll see Yahoo's core business absorbed into the wireless giant. What's the first move once Yahoo is under Verizon's umbrella? Layoffs. New reports today are claiming that we could see thousands of people laid off once the acquisition is complete.
Verizon plans to merge AOL and Yahoo into a single media division after its acquisition is closed, and that single division will be named 'Oath.' The name was revealed by AOL CEO Tim Armstrong in a tweet. Take note, though, that the Yahoo brands you're familiar with aren't going anywhere: it seems Yahoo publications like Yahoo Finance, etc., will remain under their regular names, meaning nothing much is changing for users.
In case you missed it, Yahoo has found itself in a bit of a tough place recently. First came the announcement of an attack that compromised the credentials of 500 million accounts, followed by the more recent reports that the company spied on its users on behalf of the US government. In the face of this bad news, it would appear that Verizon is reconsidering its $4.8 billion deal to buy out Yahoo.
What was once a rumor is now confirmed, with Verizon announcing today that it will acquire Yahoo's core internet business for $4.83 billion. We heard the two companies were closing in on deal last week, as Verizon was said to be in one-to-one talks with the internet company. Not only does this acquisition put Verizon in a position where it can compete with Google and Facebook on the mobile advertising side of things, but after last year's purchase of AOL, it also makes Verizon quite the presence in the online media world.
Perhaps "zombie cookie" is indeed a better name for Verizon's much criticized "supercookie" scheme. The major US carrier received a lot of heat early this year when it was revealed how it used "undeletable" cookies to track users' Internet comings and goings for the purpose of advertising. The furor has died down since Verizon allowed customers to opt out of this kind of tracking. But now it seems that Verizon is ready to earn the public's ire again, revealing that it will combine its users' advertising profile into AOL's ad network.
Microsoft is narrowing its focus, and as such has been pushing some of its extraneous efforts toward others. Earlier today word surfaced that Microsoft has struck a deal with Uber that will see workers and assets being transferred, and now it is being followed up with another announcement: AOL is getting the brunt of Microsoft’s advertising operations, as is advertising tech company AppNexus. The AOL deal in particular is said to involve a 10 year partnership, and under it AOL is going to be carrying search results from Bing instead of from Google.
U.S. telecom Verizon has announced that its buyout of AOL for $4.4 billion in cash has now been completed. As a result of the completed deal, AOL shares will no longer be traded on the stock market, as the company is now Verizon's wholly owned subsidiary. All of AOL's outstanding shares were purchased by Verizon at a price of $50 each. As was mentioned when the purchase was first announced last month, AOL's main value to Verizon is as a large ad network.
Here’s one we didn’t see coming: Verizon has agreed to purchase AOL. The deal, worth $4.4 billion in cash, gives Verizon something they’ve been wanting for some time — an instantly powerful ad network. AOL’s most recent earnings highlight that; 7% year-over-year growth in revenue, all on the back of third party ad sales, which grew 19% versus last year. As the AOL we knew shrinks from us (you can no longer use it for Apple sign-ins, for instance), the ad network kept them relevant enough for an acquisition.
This week AOL reported their Q1 2015 earnings, and with it, notified the planet of 2.1 million subscribers to their internet service with dial-up speeds. Welcome back to the age of installing the internet on your computer with a CD you got in the mail. This is a reminder that hardship exists. This is a reminder that, while there are people who are homeless on the streets of Brooklyn but still have a smartphone that can access the internet at 3G speeds, there are people living in the country connecting at 56 kilobits-per-second.
We hear stories every now and then about surprised parents who discover their children amassed large bills through excessive text messages or data usage or "free" games. The latest story of an egregious bill to surface is quite the opposite, however: an elderly AT&T subscriber says he was hit with a bill for more than $24,000 USD from the company over his landline, which typically cost $51 per month. The landline was used to access AOL dial-up (yes, people still use this), and the company reportedly told him he had to pay it.
If you’re still using an AOL email to log-in, we’re not sure if that’s impressive or sad. Though you may have been around since the early days of the Internet, times have definitely changed for the better. If you were using that email to log-in to iTunes, you’re going to have to change your ways. Apple has announced they’re pulling support for iTunes AOL log-ins, meaning you’ll have to use something else. The change also affects iBooks and the App Store.
If you’ve been receiving odd emails from an AOL email address, you’re not alone. A massive hack led to many accounts being compromised, used to send out spammy emails that included catchy headlines and suspect links. AOL has issued a response, saying their investigation ingot he matter is ongoing, and users should take steps to protect themselves.
