Marissa Mayer quits Yahoo as Verizon seals takeover

James Pearce
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Yahoo will be integrated with AOL to form a new unit called Oath, to be led by AOL boss Tim Armstrong

Marissa Mayer has quit Yahoo as Verizon Communications closed its $4.48 billion takeover of the internet firm’s core business.

Yahoo will be integrated with AOL, which Verizon bought two years ago, to form a new unit called Oath, which will be led by AOL chief Tim Armstrong.

Mayer has been CEO of Yahoo since 2012, but used an email, posted on blogging site Tumblr, to inform staff that she will step down now that the deal has been completed.

“Given the inherent changes to my role, I’ll be leaving the company,” Mayer wrote “However, I want all of you to know that I’m brimming with nostalgia, gratitude, and optimism.”

Mayer will walk away with a golden parachute payment worth an estimated $23 million in cash, according to an SEC filing.

The completion of the takeover brings to an end a long-running saga and gives Verizon a new media empire, all to be controlled under the Oath brand.

Just a month after Verizon agreed to buy Yahoo, the internet firm revealed it had been victim of two huge cyber-attacks, in 2014 and 2015 respectively, leading Verizon to seek a $350 million discount from the deal. Last week, Yahoo shareholders rubber-stamped the agreement.

Armstrong told employees in a separate note seen by Reuters that the combined company's services “reach over a billion people each month.” He added that “accomplishing our objectives and goals will require adjustments to the company.”

He said the “opportunity in front of us is not about the opinions from the pundits and it is not about the competition, it is about our ability to maniacally focus on delivering magical services to mobile enabled consumers.”

Despite this, recent reports claim there will be major job cuts across the company, with up to 2,000 roles set to be axed, according to Reuters.