Yahoo is undergoing a major reshuffle as Verizon takes over the embattled web giant. The move will see Marissa Mayer step down from its board, but continue to be CEO of the company. In addition, the part of Yahoo that is not being sold to Verizon will be renamed “Altaba”. Verizon agreed to buy Yahoo’s […]
Yahoo is undergoing a major reshuffle as Verizon takes over the embattled web giant.
The move will see Marissa Mayer step down from its board, but continue to be CEO of the company.
In addition, the part of Yahoo that is not being sold to Verizon will be renamed “Altaba”.
Verizon agreed to buy Yahoo’s search engine and web portal for $4.83bn back in July.
However, Yahoo’s shareholders held on to the company’s lucrative investments – including a 36% stake in Yahoo Japan and a 16% stake in Alibaba – and patent portfolio.
This remaining entity has no product and no staff members.
According to an SEC filing released on Monday, that entity will, provided the Verizon deal goes through, be know as Altaba and Mayer, along with five other board members, will resign from its board.
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.
Eric Brandt, who joined Yahoo’s board last March and is the former chief financial officer of Broadcom Corp., will become chairman of Altaba, according to the filing. He will be joined by four other directors who are currently on Yahoo’s board, including Thomas McInerney, who was part of the independent committee of Yahoo directors running the auction process last year.
The Verizon offer, made eight years after Yahoo turned down a $44 billion offer from Microsoft, followed a series of losses at the former internet giant, partially due to big expenditures like its $1 billion acquisition of Tumblr.
