Yahoo deal deprives Verizon of another $500mn

Verizon execs should be pleased with the discount it seemingly bullied out of Yahoo in recent months, as the company will take a $500 million pre-tax charge relating severance, acquisition and integration costs.

Part of the cost will be related to job cuts which have been announced by Oath’s new CEO Tim Armstrong recently. The newly formed media business expects to cut in the region of 2,100 jobs, roughly 15% of the workforce. Cuts have been made this week at the Huffington Post, though where the other redundancies will be made is not clear for the moment.

“In connection with the transaction, Verizon expects to record severance, acquisition and integration related expenses of approximately $500 million pre-tax in the second quarter of 2017. Verizon expects to realize over $1 billion in cumulative operating expense synergies from the transaction through 2020.”

Verizon has yet to comment on the charges, though $1 billion through the next couple of years does seem like it would be an unwelcome addition to an already prolonged (and expensive) saga.

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