Verizon disclosed that it took a $4.6 billion writedown on its Oath business, or about half of what it spent to buy the Yahoo and AOL businesses that make up the division. In a securities filing, Verizon cited “increased competitive and market pressures” for the writedown. The move raises questions once again why the telecommunications company didn’t spin off the company earlier this year.
As The Information first reported, Oath’s former CEO Tim Armstrong proposed spinning out Oath but Verizon wouldn’t play ball. At the time, investors and bankers estimated that Oath was worth around $10 billion. Since then, Verizon’s new CEO has made it clear that media will not be a focus for the company. Separately the company, has said Oath won’t meet its 2020 revenue target of $10 billion.
That leaves a lot of questions around the future of Oath.