According to sources, Yahoo CEO Marissa Mayer will not be continuing with the new company that was announced today prematurely in a tweet by AOL CEO Tim Armstrong. The new Verizon-owned entity is called Oath — we'll get to mocking that name later in the post — and is the combination of AOL and Yahoo.
It will be headed by Armstrong, who is now apparently Oath-in-Chief.
Terms of Mayer's departure are still being worked through, and her not staying on is not much of a surprise. But it will be interesting to see if she gets the full pay-out she is owed — tens of millions in severance and other kinds of renumeration that CEOs get larded into their contracts — after the recent hacking disaster and the general downturn in Yahoo's business during her four-year tenure.
AOL declined to comment as did a Yahoo spokesperson. The deal is expected to close some time this summer, delayed due to the hacking issue and the financial and legal complexity it introduced into the closing.
Tweet: Billion+ Consumers, 20+ Brands, Unstoppable Team.
In addition, sources said, that Armstrong is now close to making choices on which top Yahoo execs in Silicon Valley to keep and which to bid farewell to. Likely to stay, for example, is communications products head Jeff Bonforte; and likely to go is Adam Cahan, who has run a number of units under Mayer. On the bubble still: CRO Lisa Utzschneider (she wants to be a CEO apparently) and Enrique Muñoz Torres, who heads advertising and search product and engineering.
CFO Ken Goldman is also departing, although on his own steam as has been expected since the Verizon-owned Oath is lousy with financial types in New York.
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I will get deets on all the other Mayer execs, who have not exactly covered themselves in glory at Yahoo over the last fews years.
But sources said that the leadership in Sunnyvale will be a mix of Yahoo and AOL execs and will focus on product and engineering for the entire combined company.
Which is called Oath. Yes. Oath. A free Recode t-shirt for anyone who tweets the best joke about that new brand to me in next 24 hours. No, Tim Armstrong, you cannot play.
—By Kara Swisher, Recode.net.
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