It is now confirmed that after completion of the merger with Verizon, Yahoo’s CEO Marissa Mayer will quit the board. Moreover, after the merger is complete, the remaining businesses of the company will run under a different name- Altaba.
Verizon will acquire only the core business of Yahoo, that includes its email service, sports verticals and various other apps. The deal was announced in July 2016 and included a sum of $4.8 billion. The deal is expected to close by March 2017. The deal couldn’t be finalised till now because of various data breaches that have happened on Yahoo’s platform in the recent past.
After the core business of internet services is sold to Verizon, Yahoo’s RemainCo will be left with its various investments and stakes in other companies. Yahoo is a major investor in China’s Alibaba holding about 15 percent in the group that is worth about $35 billion. Yahoo said in a regulatory filing that the remaining portion of the company, that includes a stake in Alibaba and other ancillary holdings, will be called Altaba. The name is a portmanteau of “alternate” and “Alibaba,” reports the Wall Street Journal.
Once the acquisition is complete, six Yahoo directors are expected to exit, including CEO Marissa Mayer and co-founder David Filo. Though, Mayer will remain to be a part of the company post-acquisition. She joined Yahoo as the CEO in July 2012, after coming from Google.
There is still confirmation that the acquisition will go through by March 2017 after Yahoo’s data breaches. Verizon is looking to further lower the purchase price amidst the serious user data breaches. Tim Armstrong, AOL’s CEO, though is confident that the deal will be finalised very soon, reported CNBC.