AOL and Yahoo to merge into new firm called Oath

Internet firms Yahoo (NasdaqGS: YHOO - news) and AOL (Xetra: 6OL.DE - news) are set to be merged into a joint company called Oath, AOL chief executive Tim Armstrong has confirmed on Twitter (Frankfurt: A1W6XZ - news) .

The move comes after AOL parent company Verizon (NYSE: VZ - news) , which is one of America's biggest communications firms, agreed to buy Yahoo's internet business for just under $4.5bn.

Mr Armstrong's tweet, sent from his verified account, read; "Billion+ Consumers, 20+ Brands, Unstoppable Team. #TakeTheOath. Summer 2017."

It also revealed the new company's logo.

But the name has already attracted derision online with many branding it "sinister".

"Oath is the name of the evil tech company in the sci-fi story you wrote in 7th grade," one person tweeted, while another asked "Who is doing their marketing?"

Others have been quick to coin puns based on the name, with one social media user joking: "The best time to check your Oath Mail is while you're eating oatmeal."

Another quipped: "What'll be the metric for Oath's success as a company? Groath."

Verizon's acquisition of Yahoo's operating business is expected to be completed by July, at which point the rest of the company will become a new entity involved in investment called Altaba Inc.