Tim Armstrong

Tim Armstrong Head of Verizon is in Talks to Exit the Company

Business

Tim Armstrong who led Verizon’s effort to make it a competitor to Google and Facebook to create a digital content is in talks to leave the company. Armstrong was the CEO of AOL when it was acquired for $4.4 billion by Verizon in 2015 and oversaw the company’s efforts that include buying Yahoo for $4.8 billion in 2016. The two companies were merged in Oath, a company within Verizon. It was run by Armstrong with an intent to combine a large internet audience with advertising technology to lure marketing dollars.

The Wall Street Journal first reported the negotiations over Armstrong’s departure and confirmed to NBC News by a source familiar with the situation. A Verizon spokesperson declined any news and denied commenting on the issue. He said the company is not going to air any speculation and have no announcements to make. A former Google executive, Armstrong has been known as a fixture in the advertising industry. He reportedly wanted to spin-off AOL and Yahoo unit, but Verizon wanted to keep them. This decision of the company made Armstrong frustrated, a source who requested anonymity to speak openly reported.

Armstrong’s exit would a major setback for the company’s efforts to move beyond its existing telecommunications service and into content production and monetization. Verizon shut down its Go9- digital video platform in July, it had invested hundreds of millions of dollars in the venture. Oath’s websites that include Yahoo.com, Yahoo Sports and Yahoo Finance, The Huffington Post and AOL.com are the third most visited platform on the internet after Facebook and Google. It gathered around 209.8 million unique visitors in July on desk and mobile as per ComScore. Despite its competition with Google and Facebook in organic traffic, Oath trails in ad revenue were Google and Facebook are projected to bring in $39.9 billion and $21 billion in 2018 compared to $3.7 billion for Oath.

John Hagel

Jeffrey is acting editor in chief of AmazingNews24 with over seven years of experience in the field of online news under his belt. Jeffrey has worked with multiple media houses and is currently leading a team of journalists, sub-editors and writers through his entrepreneurial endeavours.