Yahoo made several changes in recent days. Most done to maintain its buyout deal with Verizon. First, Yahoo as we know will no longer exist. Although Verizon promised to keep the Yahoo brand alive, Yahoo will spin off a large chunk of the company. The sale does not include Yahoo’s stake in Alibaba. Nor does the sale come with Yahoo Japan’s assets. In addition, this includes stakes in other Asian companies. A new publicly-traded company will emerge.
Yahoo Changes Name
Second, the remains bear a new name. Now people will know the new company as Altaba. The new company will be a publicly-traded investment business.
Third, the board will shrink to five directors. Plus, many executives will leave Yahoo’s operating business. A SEC filing said the executives were not leaving because of bad blood with Verizon.
But it does show a different take on the company as Yahoo changes names.
Verizon confirmed the $4.8 billion Yahoo purchase in July 2016 to applause. But Yahoo was not the first purchase of its kind. Yahoo marks the second purchase of an early Web company bought by Verizon. AOL became the first in 2015. That was a $4.4 billion deal.
Unfortunately for all involved the Verizon-Yahoo deal faced bumpy roads last fall. A billion of Yahoo’s accounts got hacked. What’s more, hackers stole customers’ personal data. Back then Verizon got cold feet over the deal. The com giant wanted a price cut or to walk away from the deal.
At the time, Verizon CEO Lowell Adam justified the deal.
Verizon CEO Lowell Adam said his company bought AOL to better its strategy. Adam wanted to connect three core groups: advertisers,consumers, and creators. Furthermore, he believed bringing Yahoo into the Verizon stable would enhance his company’s standing in the media space. The deal would increase digital advertising revenues.
Verizon’s Executive VP Marni Walden will head the new business.
Yahoo Changes Names as CEO Prepares to Depart
At the same time, Yahoo CEO Marissa Mayer made a statement hinting at her departure.
“The sale of our operating business, which effectively separates our Asian asset equity stakes, is an important step in our plan to unlock shareholder value for Yahoo. This transaction also sets up a great opportunity for Yahoo to build further distribution and accelerate our work in mobile, video, native advertising, and social.
Yahoo and AOL popularised the Internet, e-mail, search, and real-time media. It’s poetic to be joining forces with AOL and Verizon as we enter our next chapter focused on achieving scale on mobile.”
Mayer praised her team and expressed pride for their effort during her tenure. Mayer said Yahoo built new lines of business. These businesses made $1.6 billion in GAAP revenue two years ago. Still it appears the company could not pull itself back to its former glory.
Finally, the companies expected the deal to close in early 2017 — as Yahoo changes names. But no one knows now. Verizon slowed down the process after Yahoo’s hacking scandal.