Telecom giant Verizon has cut the value of Oath, the unit housing its AOL and Yahoo acquisition by $4.6 billion, acknowledging rigid competition in the digital advertising market leading to decrease in revenue and profits for the unit.

“In connection with Verizon’s annual budget process in the fourth quarter, the new leadership at both Oath and Verizon completed a comprehensive five-year strategic planning review of Oath’s business prospects resulting in unfavorable adjustments to Oath’s financial projections.” An SEC filing from Verizon read.

“These revised projections were used as a key input into the Company’s annual goodwill impairment test performed in the fourth quarter. Consistent with our accounting policy, we applied a combination of a market approach and a discounted cash flow method reflecting current assumptions and inputs, including our revised projections, discount rate and expected growth rates, which resulted in the fair value of the Oath reporting unit being less than its carrying amount.”

This revision leaves its goodwill balance (intangible assets that arise when a buyer acquires an existing business) at $200 million, with about $5 billion of assets still held by Oath. Verizon also announced a voluntary separation program for 10,400 U.S. employees who are leaving the company resulting in a pre-tax severance charge between $1.8 billion to $2.1 billion in its 2018 fourth quarter.

Oath brands include popular sites like Engadget, The Huffington Post, TechCrunch, Tumblr, Autoblog, MSN and Flurry. It lost its long-time CEO Tim Armstrong who left this October, shortly before Hans Vestberg became CEO of Verizon.