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Marissa Mayer departs Yahoo with a cool $23 million
March 24 2018, 11:42 | Guillermo Bowen
Ethan Miller/GettyVerizon has officially closed its $4.48 billion purchase of Yahoo, the company announced Tuesday. He has been leading integration planning teams since the Yahoo transaction was announced in July 2016, and Oath begins operation today as a global leader in digital and mobile. The deal was on rocky ground for a while after Yahoo revealed two security breaches that impacted over a billion users, causing them to knock $350 million off the final price. More than 50 media and technology brands now sit under the Oath umbrella, including HuffPost, Yahoo Sports, AOL.com, Tumblr, Yahoo Finance, and Yahoo Mail.
As per SEC filings, Mayer could receive a more than $23 million "golden parachute" payment, including more than $3 million in cash and almost $20 million in equity, for her exit from the company. We've actually known for a few months that Mayer will not run Yahoo under Verizon, which is not exactly a blow given that her compensation package is worth around $186 million based on a New York Times report.
According to Verizon, the reason Mayer left had to do with the "inherent changes" to her role. Yahoo and AOL will form a new digital media company under Verizon called Oath.
Tim Armstrong, former head of AOL and now in charge of Oath, told analysts of a revenue goal in the $10 billion to $20 billion range by 2020.
Mayer went on to say that Yahoo has "confronted seemingly insurmountable business challenges, along with many surprise twists and turns" during her tenure.
On Friday, the remainder of Yahoo not acquired by Verizon will be renamed Altaba Inc, a holding company whose primary assets will be its 15.5 per cent stake in Alibaba Group Holding Ltd (BABA.N) and a 35.5 per cent holding in Yahoo Japan Corp (4689.T).
With its acquisition of Yahoo (YHOO) closing on Tuesday, Verizon Communications (VZ) formally combined the internet portal with AOL, setting out to build at least a $10 billion content and advertising business by 2020.
Mayer's almost five years leading the iconic Sunnyvale internet firm were notable for her failure to reverse its declining fortunes and for two world-record hacks of user data.
In 2012, after burning through four CEOs in four years, Yahoo's board of directors hired 37-year-old Mayer, a former Google vice president with extensive online search and advertising experience.