Yahoo will soon be completing its deal with Verizon Communications Inc. and has announced that it will disband its board of directors after that. Among these directors is the Chief Executive Marissa Mayers and Co-founder David Filo.
As the core internet business of the company is being sold out, the name of the company is being changed to Altaba Inc. The remaining assets of Altaba include Yahoo Japan and the stakes which Yahoo has in Alibaba Group Holding Ltd. The new name is actually the combination of the words “Alibaba” and “alternate” and this has been revealed by a person who knows quite a lot about the matter.
The position of the chairman of Altaba will be filled by Eric Brandt who became a part of Yahoo’s board in last March. Four other directors from Yahoo’s board will be joining him in the newly formed company and one of the names is Thomas McInerney. McInerney was a part of the committee of the directors who ran the auction last year.
Verizon bought Yahoo for $4.8 billion but the deal is endangered because of the recent hacks in Yahoo’s user data. According to Yahoo, Verizon could terminate the purchase because of the two major hacks or could also revise the terms of the deal.
However, Verizon has said that it will continue the deal despite the security breach of about 1 billion user accounts which was revealed last month.
According to analysts, most of the value of the business comes from its share in Alibaba and Yahoo Japan. The core business which has been sold to Verizon has less market value which is about only 10 percent of the total business. Analyst Ken Sena says that 61 percent of the value comes from the stakes in Alibaba while 13 percent is linked to Yahoo Japan.
On Monday, Verizon’s shares came down three cents to $52.65 and those of Yahoo rose by a penny to $41.35. Six of the directors will be leaving the company following this deal.
Ms. Mayer came from Google in 2012 and was named as the CEO of the company. It is expected that she will remain with Yahoo once the company joins Verizon.
- File photo of Yahoo CEO Marissa Mayer delivering her keynote address at the annual Consumer Electronics Show (CES) in Las Vegas: Reuters