The long-anticipated deal has finally come to an edge, Yahoo will be owned by Verizon Communications very soon, the deal is locked which also includes the stepping down of the current CEO Marissa Mayer and co-founder David Filo.
It is believed that the company will change its name to Altaba Inc. after the sale of its core internet business, Yahoo said in a regulatory filing. Altaba’s remaining assets include Yahoo’s stake in Alibaba Group Holding Ltd. and Yahoo Japan. The name is a combination of the words “alternate” and “Alibaba”.
And the whopping amount of $4.8bn is pending in the sale of its core internet business to Verizon.
According to the sources, the new name will reflect the fact that what remains of the company will effectively be an investment company for its stakes in the e-commerce giant Alibaba, of which it owns about 15%, and Yahoo Japan, a joint venture with Softbank, of which Yahoo owns about 35%.
The company reduced its directors’ list to five, out of which Mayer, chairman Maynard Webb and Yahoo co-founder David Filo are removed in a statement submitted to the US securities and Exchange.
This acquisition issue earlier hit the news in last July when Yahoo and Verizon reached an agreement, Mayer posted an open letter stating that she planned to stay on at Yahoo, saying:
“I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.”
However, Yahoo had uncovered a massive data breach that saw user data from more than one billion accounts potentially compromised. This followed a separate attack, disclosed in September, which affected 500 million accounts.