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Verizon’s Oath suffers revenue reversal as Yahoo/AOL integration continues

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By John Glenday, Reporter

October 24, 2018 | 2 min read

Communication media company Oath, born out of Verizon’s Yahoo and AOL merger, has posted a 6.9% slump in third quarter revenues to $1.8bn — coinciding with a spell of disruption as management battle to integrate legacy AOL and Yahoo ad platforms by the end of the year.

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Verizon’s Oath suffers revenue reversal as Yahoo/AOL integration continues

The dip in fortunes has forced Oath to row back on its ambitious target of generating $10bn in sales by 2020 as the organisation concedes that revenues are likely to be ‘relatively flat in the near term’.

Driving the decline has been a continued drop in search and desktop traffic which has undermined growth in both mobile and video, driven by a headline partnership with the NFL to stream games to mobile devices.

Addressing the results chief financial officer Matt Ellis remarked: “The cost side of that business is being managed well. We just need the revenue side of the business to achieve its potential, too — and then we’ll be happy with the business.”

Verizon paid $10bn to acquire the fallen internet titans of AOL and Yahoo back in 2015 and 2017 respectively, part of a growing media and tech empire which now extends to TechCrunch, Engadget and Tumblr.

Oath recently named K. Guru Gowrappan as chief executive officer, taking over for the departing Tim Armstrong.

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Oath Inc. is a subsidiary of Verizon Communications that serves as the umbrella company of its digital content subdivisions, including AOL and Yahoo!. Verizon acquired...

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