Verizon to Rename Yahoo, Altaba after Purchase
It also looks as though Marissa Mayer is out of a job…
Verizon announced yesterday that it still intends to acquire Yahoo for its aforementioned $4.8B purchase plans. This is surprising to many, me included, as Yahoo revealed that it had a security breach where over 1.0B user accounts had been exposed. This large breach occurred six to twelve months prior to the attack in 2014 where 500M user accounts were compromised. This deal came about after CEO Marissa Mayer failed to turn the company around after her arrival in early to mid-2012.
It also looks as though she’s completely given up. According to Paul Sweeney, an analyst at Bloomberg Intelligence, “…it looks like [Mayer’s] plan is to complete the sale of the operating company to Yahoo and let the lawyers and tax accountants figure out the best option for the stakes in Alibaba and Yahoo Japan.” She is also out as a director, as she as well as six other key board members, including Yahoo cofounder David Filo and former board chairman Maynard Webb, will be stepping down. Webb was named Chairman emeritus.
Despite the additional, larger breach, Verizon still appears to be interested in the 23 year old company. After the sale of the company, Yahoo will change its name to Altaba – a combination of the words, “alternate” and “Alibaba,” according to someone familiar with the matter. (A friend of mine said “Altaba” sounds like the name for a male enhancement medication…) Yahoo owns stakes in both Alibaba Group Holding Ltd. And Yahoo Japan, where, according to analysts, is where the core of the sale’s value for Verizon lies. Verizon isn’t expected to gain a lot of value from its direct purchase of Yahoo.
Interestingly enough, according to the Wall Street Journal, Mayer is expected to stay with Yahoo after the sale to Verizon, though her exact role has yet to be announced.