January 10, 2017
Yahoo will change its name to Altaba Inc. if Verizon goes ahead with the purchase of the tech firm’s Internet division, according to a SEC filing.
The name, seemingly, was inspired by the company’s 15 percent stake in Chinese e-retailer Alibaba.
The SEC filing also revealed CEO Marissa Mayer and board chairman Maynard Webb will resign from the company’s board of directors if the sale is completed.
“The board has determined that, immediately following the closing, the size of the board will be reduced to five directors,” the filing reads. “Tor Braham, Eric Brandt, Catherine Friedman, Thomas McInerney and Jeffrey Smith will continue to serve as directors of the company following the closing, and Mr. Brandt will serve as chairman of the board.”
Aside from Mayer and Webb, David Filo, Eddy Hartenstein, Richard Hill and Jane Shaw will resign from the board. All of them have said the resignations are not “due to any disagreement with the company on any matter relating to the company’s operations, policies or practices.”
But will the sale actually happen? That is the four-billion-dollar-question in light of the two recently revealed breaches of Yahoo’s systems that, in total, affected more than 1.5 billion accounts.
Yahoo and Verizon struck their $4.83-billion all-cash deal back in July and the transaction was to be finalized in the first quarter of 2017. At that time, Yahoo was to be integrated with AOL under Marni Walden, EVP and president of the product innovation and new businesses organization at Verizon.
Walden recently expressed some doubt about the deal happening. When asked last week if the transaction would still occur, she was quoted by Reuters as saying: “I can’t sit here today and say with confidence one way or another because we still don’t know.”
Verizon General Counsel Craig Silliman indicated at a press conference the breach of 500 million user accounts disclosed in September by Yahoo could affect the sale. Then, in December, Yahoo admitted to yet another hack, this time affecting one billion accounts.
Verizon, at one point, was said to be pushing for a $1-billion discount off the purchase price, but whether Verizon will continue to push for a lower price or find a way to scrap the deal altogether is anyone’s guess.
Jennifer Cowan is the Managing Editor for SiteProNews.