Verizon takes $4.6 billion write-down on Oath
The wireless carrier says its media division, which includes AOL and Yahoo, is less valuable than previously thought.
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Verizon store in Union Square in New York City.
Verizon's plan for Yahoo and AOL doesn't appear to be going as expected.
The wireless carrier merged the former internet giants in 2017 under a media division dubbed Oath, aiming to create an alternative to digital advertising juggernauts Google and Facebook.
However, Verizon said Tuesday the integration of Yahoo and AOL has achieved lower-than-expected benefits. As a result, Verizon expects to record a goodwill impairment charge of about $4.6 billion in the fourth quarter, the company said in a statement filed with the US Securities and Exchange Commission.
Verizon agreed to buy Yahoo's operating business for $4.83 billion in 2016, though the price was slashed by $350 million after it was revealed that Yahoo had suffered two massive data breaches.
Earlier this year, Tim Armstrong stepped down as CEO of Oath . He was replaced by K. Guru Gowrappan.
Verizon didn't immediately respond to a request for additional comment.