Yahoowill be renamed Altaba, after Verizon deal goes through according to an SEC filing, which also states that CEO Marissa Mayer, co-founder David Filo and four other directors on the company’s 11-member board will resign after the deal closes. For Yahoo, the past few months have been rocky as it faced the biggest data breach in history with over 1 billion mail accounts hacked. Now an AP report suggests Verizon is reassessing whether it should renegotiate the sales price.
Let us take a look at the top five things to know about what is the latest in the Yahoo saga:
Yahoo plans to change its name to Altaba Inc, after it closes deal with Verizon. Yahoo will hand over its digital services including email, websites, mobile apps and advertising tools to Verizon worth $4.8 billion. A report in The Guardian suggests only parts of Yahoo ‘that is not being sold to Verizon will be renamed ‘Altaba’. The site quoted an SEC filing filed today.
Yahoo CEO Marissa Mayer will step down from the company’s 11-member board along with other board members. However, Mayer will continue to be the CEO till the deal goes through. Marissa Mayer was hired by Yahoo in 2012 from Google. Interestingly, Mayer, if fired from Yahoo now, will be eligible for a $54.9 million severance package.
“The remaining directors will govern Altaba, a holding company whose primary assets will be a 15 percent stake in Chinese e-commerce company Alibaba Group Holding Ltd and 35.5 percent stake in Yahoo Japan,” says a Reuters report.
Yahoo faced a massive data breach in 2013, 2014 with data of over 1 billion user accounts being impacted. Yahoo blamed a state-sponsored actor for the hacking and asked all users to change their passwords and secure their accounts. However, the breach has jeopardised its deal with Verizon as the latter is looking to renegotiate terms of the deal, according to reports.
When Yahoo reported the 1 billion account breach in December 2016 last year, it also revealed the hackers had managed to get access to the company’s proprietary cookie technology, which meant they could access accounts without requiring passwords, or any other security codes.
Verizon Communications Inc, in July 2016, said it will buy Yahoo Inc’s core Internet properties for $4.83 billion in cash. Yahoo’s mail, search, messenger assets and advertising technology tools will be combined in to Verizon’s AOL unit. Yahoo is one of the largest properties on the Internet, and has millions of customers using email, finance and sports offerings, among others.
Yahoo shuts down new products
Yahoo, in March, 2016 announced it was shutting down products like Yahoo Games, Yahoo LiveText, its regional media properties, in efforts to streamline the business. Yahoo Games site and publishing channel was discontinued from May 13, 2016. Yahoo Livetext, which launched in 2015, was shut down within a year. Yahoo also shut down its regional, genre-specific media properties.