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Armstrong Has Explored Options for Verizon’s Oath

Oath CEO Tim Armstrong has been exploring strategic options for the digital media division, created from the combination of Yahoo and AOL, that could include buying the business out of Verizon, say people familiar with his thinking.

There is no sign Mr. Armstrong and Verizon are currently discussing a buyout, however. Instead, executives at Verizon and Mr. Armstrong for now are focusing on making Oath a rival to Google and Facebook as an advertising outlet. With that in mind, Oath is increasing its spending on video and products in areas it sees as key: sports, news, finance and entertainment, the people said. Oath also is looking to partner with TV networks to provide content for its various apps, they said.

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‘The plan right now is the same plan as it’s been with Verizon, which is to leverage the scale of Verizon to build the mega brands inside Oath for the mobile world.’