While it’s still unclear if Verizon is going to move forward with the $4.8 billion acquisition of Yahoo in light of the revelation that one billion of its accounts were compromised, we do know what will happen to the rest of the company if it does go through. It will be renamed to…Altaba.
This was revealed by Yahoo is an SEC filing yesterday. Keep in mind that Verizon might continue to use the Yahoo brand name if they decide to acquire the company.
Since Verizon is only acquiring portions of Yahoo, granted they are its core ones, the left behind parts named Altaba will operate as a investment firm and comprise of a 15% stake in AliBaba and 35.5% stakes in Yahoo Japan, which is a joint venture with Softbank.
Moreover, the CEO of Yahoo, Marissa Mayer will step down and resign from the company while Cofounder David Filo along with four other board members — Eddy Hartenstein, Richard Hill, Jane Shaw and Maynard Webb will be following up on the deed.
Marissa’s position in the future is still uncertain. She might be asked to become a part of Altaba, or she might be helping Verizon with integrating Yahoo with its business. She could even join Verizon after the purchase. Meanwhile Altaba will be working on ensuring profitable returns on its investments in Yahoo Japan and Alibaba.
Reports suggest that the acquisition is on the rocks in light of the billion accounts being hacked and news that Yahoo built a secret backdoor for US authorities. Verizon might be looking for a discount or seek a dissolution of the agreement completely.
Regardless, it’s a sad end for one of the pioneering companies of the internet age. At one point, Yahoo’s worth was well above $125 billion but constant missteps and Marissa Meyer’s inability to steer the ship out of dangerous waters have led to its demise.