A week after disclosing a $4.6 billion writedown in the value of Oath, Verizon is officially ditching the brand for good. The wireless giant said on Tuesday that it is replacing the Oath brand with the more straightforward Verizon Media Group. It's an effort, the company said, to better align the media division as one of Verizon's core businesses. The name change will take effect on Jan. 8.
As the face of Verizon's digital advertising business, the Oath brand emerged in 2017 from Verizon's AOL and Yahoo acquisitions.
The goal was to position Oath as a disruptor in digital, but increased competition and market pressures this year resulted in a different scenario, and revenues and earnings trended downward. Oath's ambiguous name probably didn't have a material impact on Verizon's financials, but it was confusing nonetheless.
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In addition to the writedown and rebranding, Verizon also announced recently that it was reorganizing into three business units revolving around consumer, business and Verizon Media Group/Oath. Verizon said the reorganization will be effective Jan. 1.
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Verizon is writing down the value of its media business and take a charge over a voluntary separation program.
Verizon's wireless business reported solid results, but Oath -- an effort to diversify the company's revenue base -- is going to fall short of 2020 targets.
Verizon used a 5G-upgradeable Motorola smartphone with a Qualcomm 5G modem and Samsung's 5G technology to connect to its new mobile network.