Business Hi-Tech

Yahoo will become Altaba post Verizon deal; Marissa Mayer to resign

It seems that Yahoo’s sale to Verizon is going to go through after all with SEC filings indicating that part of the company that is not going to be sold to Verizon will be renamed as Altaba Inc. after the deal. The filing also indicates that CEO Marissa Mayer, co-founder David Filo and four other directors on the company’s 11-member board will resign after the deal closes.

Yahoo’s deal with Verizon was on shaky grounds post the massive breach that was reported by Yahoo late last year. There were reports that Verizon could be in the mood to renegotiate its terms of purchase with Yahoo post the deal. However, with no concrete evidence turning up regarding any new terms of the sale and with the SEC filing revealing new details about Yahoo’s plans post the deal, we believe that the sale is going to happen.

Once the deal with Verizon is done, the part of Yahoo that will not be sold will be renamed Altaba Inc. Yahoo will be selling off its digital services including email, websites, mobile apps and advertising tools to Verizon worth $4.8 billion. Post the deal, Yahoo CEO Marissa Mayer will step down from the company’s 11-member board along with other board members, but she will continue to be the CEO till the deal goes through.

The new company Altaba will be governed by the remaining directors. Altaba, a holding company whose primary assets will be a 15 per cent stake in Chinese e-commerce company Alibaba Group Holding Ltd and 35.5 percent stake in Yahoo Japan.

Verizon Communications Inc, in July 2016, said it will buy Yahoo Inc’s core Internet properties for $4.83 billion in cash. Yahoo’s mail, search, messenger assets and advertising technology tools will be combined in to Verizon’s AOL unit. Yahoo is one of the largest properties on the Internet, and has millions of customers using email, finance and sports offerings, among others.

Yahoo, in March, 2016 announced it was shutting down products like Yahoo Games, Yahoo LiveText, its regional media properties, in efforts to streamline the business. Yahoo Games site and publishing channel was discontinued from May 13, 2016. Yahoo Livetext, which launched in 2015, was shut down within a year. Yahoo also shut down its regional, genre-specific media properties.

About the author

Ravi Mandalia

Ravi Mandalia is a professional technology and science editor with over six years of experience. Ravi has been working with some of the biggest names in online media industry in the UK and US.

Add Comment

Click here to post a comment