As a proof that Verizon might go ahead with initial plans to acquire Yahoo, the latter’s name is now agreed to be changed to Altaba and will no more be known as Yahoo once the sale goes through, Techcrunch reports.
Verizon had planned to buy up Yahoo for $4.8 billion but started to drag its feet recently when a series of data security breaches which affected over one billion users hit Yahoo. Verizon considered reducing the offer for the purchase among other concessions if the sale would go on, but these considerations remain to be seen as Yahoo filed the requirement for the acquisition with the Securities and Exchange Commission.
About six top executives of Yahoo will resign or step down from their positions once the sale goes through. To this extent, Yahoo CEO Marissa Mayer, Yahoo co-founder David Filo, Yahoo board chairman Maynard Webb, and three other persons will leave the company.
There are 11 board members in Yahoo, the rest five will remain after Verizon eventually buys the company after the other six leave. Those that will remain in Yahoo, or rather Altaba, are Tor Braham, Eric Brandt who was the last to join the board, Catherine Friedman, Thomas Mclnerney and Jeffrey Smith. Eric Brandt has been appointed the new chairman of the company, and it is not known if CEO Marissa Mayer will depart forever or remain in some other capacity.
But the six executives leaving made it clear through their SEC filing that they are not leaving Yahoo due to any supposed disagreement as far as the company’s practices, policies or operations are concerned. Verizon’s plans to buy Yahoo was first announced in July 2016.
It appears the new name Altaba was chosen for the new Yahoo after Verizon’s purchase because the former retains its 15% stake in Alibaba and another 35.5% stake in Yahoo Japan. Other assets apart from these will be assimilated into Verizon.
According to USA Today, Yahoo had had to sell its business because it was losing advert business to rivals such as Facebook and Google among other woes.