Tim Armstrong is out as CEO of Oath, Verizon’s assortment of digital media properties.
Ok. Guru Gowrappan, who has been president and chief working officer of Oath since April, will take over as CEO on October 1. Armstrong will keep on as an adviser till the top of the 12 months.
Oath’s manufacturers embody AOL, Yahoo and HuffPost. The corporate was launched final 12 months after Verizon ( accomplished its buy of Yahoo. Armstrong beforehand ran AOL, which was acquired by Verizon in 2015. )
“We’re exceedingly grateful to Tim for his contributions in founding Oath as a power in digital media and expertise,” stated Lowell McAdam, Verizon’s chairman. “Together with his continued steerage over the subsequent few months, our enthusiasm for Oath’s potential has by no means been better.”
The Wall Road Journal reported final week that Armstrong was in talks to depart. The Journal cited sources who described stress between Verizon and Oath as Oath tried to construct a digital advert enterprise to compete with Google ( and )Fb (. )
To date, Oath hasn’t made a lot of a dent. Wall Road analysts have lengthy known as the ability wielded by Google and Fb within the advert market a “digital duopoly.”
Armstrong’s departure can also be the most recent signal of upheaval at Verizon. This summer season, Verizon changed McAdam, then CEO, with Hans Vestberg, the telecom firm’s chief expertise officer.
That transfer was broadly seen as an indication that Verizon needed to give attention to wi-fi expertise above all else. Vestberg was behind Verizon’s 4G LTE rollout and its plans to construct a 5G wi-fi broadband community.
Armstrong held senior positions at Google, together with in promoting, earlier than he took the AOL job in 2009.
Analysts on the time had been optimistic concerning the rent, however Armstrong did not escape controversy. Throughout his tenure, the corporate acquired Patch, a neighborhood information web site that Armstrong had co-founded two years earlier.
AOL struggled to monetize the web site, at one level shedding a lot of its staffers. Armstrong additionally publicly fired the web site’s inventive director on a convention name. AOL later bought Patch.
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Verizon purchased AOL for $four.four billion not lengthy after that, including the media firm’s on-line video companies, promoting enterprise and information websites to its portfolio. AOL managed websites together with HuffPo, TechCrunch and Engadget. The acquisition was thought of a turning level for the beleaguered AOL.
Final 12 months, Armstrong helped spearhead Verizon’s buy of Yahoo for $four.eight billion, uniting the media property below Oath.
Gowrappan, Armstrong’s successor, held a senior position on the Chinese language conglomerate Alibaba Group earlier than becoming a member of Oath earlier this 12 months. Verizon stated in a information launch that he would lead the “subsequent part of Oath’s international progress technique.”
CNNMoney (New York) First printed September 12, 2018: 2:29 PM ET