US operator Verizon unveiled Oath, a new business division which will handle the combination of its AOL unit with assets from Yahoo once a $4.48 billion deal to acquire core assets from the latter closes later this year.
AOL CEO Tim Armstrong revealed the plans in a tweet, stating the new unit would bring together over 1 billion consumers and more than 20 brands. The plan is to launch Oath in mid-2017, but further details of the new unit are currently scant.
“In the summer of 2017, you can bet we will be launching one of the most disruptive brand companies in digital,” AOL added in a statement to Bloomberg.
Verizon sealed its deal to acquire Yahoo’s core internet business in February, and expects the deal to close in Q2 2017.
The operator acquired AOL in 2015 for $4.4 billion, and was already widely expected to create synergies between AOL and Yahoo in a bid to fuel its ambition to become a “top mobile media company”. Specifically, Verizon will be hoping to use the two companies to boost its mobile media and advertising efforts, in a shift away from relying solely on its traditional telecoms operations.
In late March, Verizon unveiled a new business structure, with a focus on three separate divisions. In addition to hiring ex-Ericsson CEO Hans Vestberg as head of its new network and technology team, the company also named Marni Walden, current president of product innovation and new business, to head up a media and telematics division.
The company said the new unit will be used to scale and grow Verizon’s portfolio of new business. Presumably, Oath will come under this division.
After the merger with Verizon closes, Yahoo previously said its remaining assets, not owned by Verizon, will continue under the name Altaba.