It’s the end of an internet era.
Yahoo, an iconic early adapter of the World Wide Web, is now part of Verizon Communications, after a $4.48 billion deal was finalized Tuesday for Yahoo’s core internet operations.
The remainder of Yahoo will be called Atlaba Inc., which will serve as a holding company for Yahoo’s shares in Chinese e-commerce giant Alibaba.
Yahoo was founded in 1994 by two Stanford graduate students, and quickly became a leading portal site. At the height of the dot-com bubble, it was estimated to be worth $100 billion.
Now, under Verizon, Yahoo will join another aged internet property, AOL. The two companies will part of a division of Verizon called Oath, which is led by AOL CEO Tim Armstrong.
Oath says it has about 1.3 billion monthly users, and it hopes Yahoo may help build audience.
“Now that the deal is closed, we are excited to set our focus on being the best company for consumer media, and the best partner to our advertising, content and publisher partners,”Armstrong said.
About 2,100 people are expected to lose their jobs under the new structure in what Oath says will be a cost saving measure.
Controversial Yahoo CEO Marissa Mayer will not join Oath. According to the New York Times, she was paid on average $1 million per week during her five-year stint at Yahoo. She is also reportedly receiving a $23 million severance package.
“Given the inherent changes to my role, I’ll be leaving the company,” Mayer wrote in an email to employees. “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,” it said in a statement.