Marissa Mayer to Depart Merged Yahoo, AOL (Report)

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AOL CEO Tim Armstrong

The combined company will be rebranded as Oath.

Yahoo CEO Marissa Mayer will not be joining the company when it finalizes its sale to Verizon, according to a report Monday from Recode

The company, which will merge with AOL to form a new Verizon-owned business called Oath, will be run by AOL CEO Tim Armstrong, who Recode reports is in the process of deciding which Yahoo executives to keep on his team. The report also notes that Yahoo CFO Ken Goldman will leave the company after the sale closes. 

"Marissa is focused and working very hard to get this transition done," said a source familiar with the company. "It's important for it to be done well."

Armstrong tweeted out the news about Oath on Monday, noting that the new company will have more than a billion consumers and 20 brands. His tweet came after Business Insider reported that Oath would combine Yahoo's search, mail, content and advertising technology businesses with AOL under Verizon's executive vp Marni Walden.

A spokeswoman for AOL said in a statement about Oath, "In the summer of 2017, you can bet we will be launching one of the most disruptive brand companies in digital."

Confirmation of the new name seems to indicate that Verizon's acquisition of Yahoo is back on track following the disclosure last fall of two large data breaches that have held up the transactions. Verizon announced in February that it would cut its deal for Yahoo by $350 million as a result of the breaches, which combined impacted more than one billion Yahoo users. 

Oath is just the second name change for Yahoo this year. After the company sells its internet assets to Verizon, it will rename the remaining business — which includes its stakes in Alibaba and Yahoo Japan — Altaba. 

It is unclear if the name change means that Verizon will retire the AOL and Yahoo brands. If so, it would mean the end for two of the biggest internet brands of the first dot-com boom. 

April 3, 3:11 p.m.: Updated to include reports of Marissa Mayer's departure.
April 3, 3:58 p.m.: Updated with additional information about Mayer.