Verizon Communications is writing down the value of its AOL and Yahoo acquisitions. Intense competition in digital advertising space is apparently the cause behind weakening revenue and thinning profit of the business segment, leading Verizon to slash the value of its AOL & Yahoo assets by $4.6 billion.
The move by the telecom giant is estimated to wipe out almost half of the value of its ‘Oath’ division (which includes AOL, Yahoo, the Huffington Post and other businesses). Last month, the company indicated that Oath would be renamed ‘Verizon Media Group/Oath’ as part of a broader restructuring plan.
The revision in Oath’s value leaves its goodwill balance (i.e. the intangible value of an acquisition) at about $200 million, according to Verizon’s Tuesday filing.