Verizon takes $ 4.6 billion on ed media business
Verizon will charge a write-down fee of NOK 4.6 billion, as the company's media industry does not meet expectations, according to a regulatory notice filed Tuesday.
" Verizon Media Media, branded Ed, has experienced increased competitive and market pressure through 2018, which has led to lower than expected revenues and earnings, "said filing. "These presses are expected to continue and have resulted in market position loss to our competitors in the digital advertising business."
Verizon says the media segment is less valuable than previously assumed and has adjusted economic forecasts as a result.
The company's editorial unit ̵[ads1]1; the result of a merger between Yahoo and AOL under the Verizon brand – has come under scrutiny as Verizon aims to save 10 billion dollars in cash by 2021. Newly appointed CEO Hans Vestberg has taken an aggressive review of business units a
Verizon announced Monday 10,400 employees had accepted buyout offers and wanted to leave the company by June 2019. The program will cost Verizon between $ 1.8 billion and $ 2.1 billion in departure costs in the fourth quarter of 2018, according to archiving.
Former ED CEO Tim Armstrong formed the division as a way to fight Google and Facebook's dominance on the digital advertising market. Armstrong left the company in September, and in November Verizon reorganized its business in three segments: Verizon Business, Verizon Consumer and Verizon Media Group. Guru Gowrappan was appointed CEO of Verizon Media Group.
Shares in Verizon only entered the red during premarket trading Tuesday, amidst a total market swing.
