Verizon to Create Company Called Oath After Yahoo Acquisition

Verizon has been working on purchasing Yahoo, the troubled internet company. Once that acquisition is complete, Verizon has announced that it plans to create a new company to run Yahoo and help mix it with the AOL operations that Verizon already owns. The company that runs the show will be called Oath.

Verizon says that the Yahoo and AOL brands will continue on under Oath, but the mobile giant isn’t offering up any details on exactly what it has planned for Oath at this time reports Detroit News. The first details on Oath will come this summer.

AOL issued a statement on Monday saying, “You can bet we will be launching one of the most disruptive brand companies in digital.” AOL executive Tim Armstrong has stated that Oath will manage more than 20 different brands. The goal for Verizon with the purchase of Yahoo is to have the ability to sell more digital advertising.

The purchase will cost Verizon $4.5 billion, which is a discount on the $4.8 billion Yahoo was originally asking. The price for Yahoo was reduced when detials on two hacks that resulted in personal information on over a billion user accounts being stolen surfaced. The fear that led to a price reduction in the acquisition negotiations was that users might have lost some faith in Yahoo and that would hamper the ability of Verizon to sell ads through the internet propery. Verizon will take over Yahoo email and online operations by June 30.