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Verizon to incur $500 million in pre-tax costs from Yahoo deal

Staff Writer |
Verizon Communications said on Thursday it expected to incur about $500 million in pre-tax expenses in the second quarter as a result of its $4.48 billion purchase of Yahoo's core business.

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Verizon is combining Yahoo's internet assets with AOL, which it bought two years ago, to form a venture called Oath, led by AOL CEO Tim Armstrong. Oath's more than 50 brands include HuffPost, TechCrunch and Tumblr.

The expenses are related to severance payments, acquisition and integration costs, Verizon, the No. 1 U.S. wireless operator, said in a regulatory filing.

Verizon also said it expected to save over $1 billion in operating costs through 2020 as a result of the Yahoo deal, which closed on Tuesday.

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