Yahoo Inc on Monday said that it would rename itself Altaba Inc just as the Chief Executive Officer Marissa Mayer would step down from the board after the closing of its deal with Verizon Communications Inc (VZ.N).
The company plans to change its name to Altaba after it turns over its email, websites, mobile apps and advertising tools to Verizon.
The new name is meant to reflect Yahoo’s transformation into a holding company for investments in China’s e-commerce leader Alibaba Group and Yahoo Japan that are worth about more than 40 billion dollars (£33bn) in total.
In the SEC filing, Yahoo said: “In light of the fact that following the Closing the Company will operate as an investment company under the Investment Company Act of 1940, the Board has determined that, immediately following the Closing, the size of the Board will be reduced to five (5) directors.
“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.
“Each of David Filo, Eddy Hartenstein, Richard Hill, Marissa Mayer, Jane Shaw and Maynard Webb has indicated that he or she intends to resign from the Board effective upon the Closing, and that his or her intention to resign is not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”
Yahoo has a deal to sell its core internet business, which includes its digital advertising, email and media assets, to Verizon for 4.83 billion dollars.
The terms of that deal could be amended – or the transaction may even be called off – after Yahoo last year disclosed two separate data breaches; one involving some 500 million customer accounts and the second involving over a billion.
Verizon executives have said that while they see a strong strategic fit with Yahoo, they are still investigating the data breaches.
Five other Yahoo directors would also resign after the deal closes, Yahoo said in a regulatory filing.
The remaining directors will govern Altaba, a holding company whose primary assets will be a 15 per cent stake in Chinese e-commerce company Alibaba Group Holding Ltd ( BABA.N) and 35.5 per cent stake in Yahoo Japan.
Yahoo CEO Marissa Mayer is leaving. “She intends to resign from the Board effective upon the Closing, and her intention to resign is not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices,” notes the SEC filing.
David Filo, who co-founded Yahoo, is also leaving the company’s board. End of the era, as we noted earlier.
Yahoo’s web services have been sold to Verizon. This means once the deal completes, all those Yahoo Mail and Messenger etc will be operated by Verizon.
The remaining Yahoo — now known as Altaba — will be mostly an investment firm. The company will have stakes in Alibaba and Yahoo Japan. It also has some assets in the form intellectual property.