What's Happening in the US Telecom Industry?

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What's Happening in the US Telecom Industry? PART 1 OF 18

Will Verizon Let Go of Marissa Mayer?

Cloud of uncertainty persists

The sale of Yahoo to Verizon (VZ) is expected to close in June or sooner. However, a cloud of uncertainty still hangs over the deal, and it has much to do with the fate of Yahoo executives such as Marissa Mayer.

Mayer is expected to continue leading Yahoo as CEO of the company until its sale to Verizon closes. The same is expected of Yahoo CFO Kenneth Goldman. But what happens to Mayer and other Yahoo top brass after the sale is a mystery. News website Recode has claimed Mayer won’t transition to Oath, a newly formed Verizon company that will be the parent of AOL and Yahoo. AOL CEO, Tim Armstrong, is expected to be the head of Oath.

Will Verizon Let Go of Marissa Mayer?

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A new set of leaders for Yahoo?

Mayer joined Yahoo from Google, an Alphabet (GOOGL) company, in 2012 and her tenure was characterized by struggles to keep the company afloat amid tough competition. The above chart shows how Yahoo’s revenue trended under Mayer.

Verizon could decide to let go of Mayer to give fresh leaders a chance to steer the company to the next level. Verizon, like fellow carriers AT&T (T), Sprint (S), and T-Mobile (TMUS), is pushing into the media business in the hunt for new growth.

A beautiful send-off

If Verizon doesn’t hire Mayer after the discounted $4.5 billion transaction closes, she is expected to walk away with $23.0 million in severance payment and other benefits, according to regulatory filings by Yahoo.


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