Goodbye, Yahoo!; Hello Altaba
Internet icon Yahoo will cease to exist as an independent company and its name banished into obscurity when the company's sale to Verizon Communications, Inc. is completed in the next few months.
Verizon, the largest U.S. wireless communications service provider, agreed in July 2016 to acquire Yahoo for $4.8 billion. Yahoo was founded in January 1994 by Jerry Yang and David Filo and became one of the early internet pioneers. It is known globally for its Web portal; search engine Yahoo! Search, and related services.
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One of the results of the deal will be extinguishing the Yahoo brand in the U.S. since the deal sold Yahoo's operating businesses to Verizon.
What will remain of Yahoo once its holdings in Chinese e-commerce giant Alibaba Group; Yahoo Japan and other assets are sold-off will be a publicly-traded investment company with the weird name of Altaba. Eric Brandt, a Verizon man, was named board chairman of Altaba.
Yahoo CEO Marissa Mayer, co-founder David Filo and others will resign from the company's board when the sale to Verizon is completed.
Leaving along with Mayer and Filo are board chairman Maynard Webb and three others are departing. It appears there is no future role for Mayer in Altaba, which Verizon said is not an operating company.
In a Securities and Exchange Commission filing yesterday, Yahoo said the resignations are "not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices."
Once the most popular website in the U.S., Yahoo began to decline since the late 2000. On July 25, 2016 Verizon announced its intent to acquire Yahoo's internet business for only $4.8 billion, an insult to a company once worth over $100 billion but an indication of how far Yahoo's star fell in just a decade.
Yahoo's 15% stake in Alibaba and 35.5% stake in Yahoo! Japan will remain intact but will be unwound over time.