Yahoo Will Be Called Altaba After Its Sale To Verizon; 2K Layoffs Final Post the Deal
Marissa Mayer will be stepping down as CEO of Yahoo, though she will still own about $186 million worth of stock when she leaves.
The news of Yahoo's shareholders officially approving the company's sale to Verizon for $4.48 billion is officially locked.The deal however, will close on June 13, 2017.
It is said that Yahoo will change its name to Altaba and re-structure itself as an investment company. Altaba's portfolio will include big slabs of Chinese web concern Alibaba and Yahoo! Japan, a Yahoo!-like service that also branched out into e-commerce, smaller stakes in numerous other companies and a patent portfolio.
The US$4.8bn Verizon decided to pay for Yahoo!'s web assets, after knocking the price down due to security breaches, will become another Altaba asset.
Yahoo's investors will end up with a stake in Altaba, who will then get to figure out, what to do with its assets in pursuit of the obligation to enhance shareholder value.
Also post the restructuring etc, Yahoo and AOL will be merged into a combined entity called "Oath." And AOL has indicated that it's planning to do over 2,000 layoffs after the final changes take place.
Last but not the least, Marissa Mayer will be stepping down as CEO of Yahoo, though she will still own about $186 million worth of stock when she leaves. Yahoo's purchase price was lowered by $350 million in the wake of the revelation that Yahoo passwords and personal information had been compromised during a massive hacking attack earlier.
Those layoffs will be even more bitter for the fact that Yahoo's shareholders also signed off on executive compensation packages that will see millions land in the pockets of managers who engineered a sale but could not turn the company's fortunes around.
Yahoo's 23-year run as an independent company since 1994, was dominant search engine, also added a portal, messaging, email, music, multi-player games and for many other services. But the company's services started to look flunky compared to those offered by Google and it was quickly losing market share.
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