Goodbye!Yahoo to rename itself 'Altaba' after Verzon Deal.
Yahoo Inc.reported on Monday that Yahoo to be renamed Altaba.It will whittle down its board after completing its deal with Verizon Communications Inc., and several longtime directors, including Chief Executive Marissa Mayer and co-founder David Filo, will step down as directors.After the sale of all its core internet business, the company will change its name to Altaba Inc. For months, as the deal has made its way through negotiations and regulatory reviews, Yahoo referred to the hypothetical remains of its business as RemainCo.Now, the company has unveiled a slightly less literal name: "Altaba". Altaba's remaining assets include Yahoo's stake in Alibaba Group Holding Ltd. and Yahoo Japan. The name is a combination of the words 'alternate' and 'Alibaba,' a person familiar with the matter said."
The moves would happen after the closing of the roughly $4.8 billion sale to Verizon, which has been endangered by two huge hacks of Yahoo’s user data. In the filing, Yahoo said Verizon could terminate its purchase of Yahoo or renegotiate the terms because of the hacks.
Verizon has become less certain that the deal will go through after a second breach of one billion accounts was revealed last month. The breaches could be a material event that would allow Verizon to change the terms of the deal, executives have said.
Still, analysts say most of Yahoo’s value stems from its stakes in Alibaba and Yahoo Japan, not the core business sold to Verizon. The core business accounts for 10% of Yahoo’s market value, Evercore ISI analyst Ken Sena wrote in a Dec. 15 note. About 61% of Yahoo’s worth is tied to its stake in Alibaba, while 13% is linked to Yahoo Japan Corp., Mr. Sena wrote.
On Monday, Yahoo’s shares rose a penny to $41.35 in recent after-hours trading and Verizon’s are down three cents to $52.65.
Marissa Mayer, shown in 2015, joined Yahoo as CEO from Google in 2012.
Marissa Mayer, shown in 2015, joined Yahoo as CEO from Google in 2012. PHOTO: ELIJAH NOUVELAGE/REUTERS
Six Yahoo directors will be leaving after the Verizon sale, including Ms. Mayer, Mr. Filo and Maynard Webb Jr., a director since February 2012, who was named chairman in August 2013. Mr. Webb, as of Monday, became chairman emeritus.
Also leaving the board will be Jane Shaw, a former pharmaceutical industry executive who joined in 2014, as well as media executive Eddy Hartenstein and Richard Hill, former CEO of Novellus Systems Inc.
Ms. Mayer was named CEO of Yahoo after she came over from Google in 2012. She is expected to remain with Yahoo once it becomes part of Verizon.
Messrs. Hartenstein and Hill joined Yahoo’s board in early 2016 after being nominated by hedge fund Starboard Value LP. Two others nominated by Starboard, former banker Tor Braham and Starboard chief executive Jeffrey Smith, will stay on the board of Altaba.
At that time, the activist investor sought to replace the entire slate of directors, saying the board wasn’t making changes quickly enough.
End of the Famous Pioneer of the Early Internet Era
The saddest part of the whole saga is the end of one of Silicon Valley's most recognizable leaders.
Founded by Stanford graduates Jerry Yang and David Filo in 1994, Yahoo was once the king of the Internet, but it lost out to more innovative rivals including Google and Facebook. Yahoo was once a $125 billion behemoth as big in its time as Facebook or Google are today, but Mayer's time at the company has been marred by slowing growth and internal dissent, which leads to the end of one of the pioneers of the early internet era.