Yahoo Inc. has disclosed in a SEC filing today that the part of Yahoo that’s left after the deal with Verizon is completed, will be called “Altaba” and the board of directors will also be reduced.
Yahoo Inc. signed Stock Purchase Agreement with Verizon Communications Inc. on July 23, 2016. The Board of Directors of the Company has made certain determinations with respect to the size and composition of the Board following the closing of the Sale Transaction.
Basically, Yahoo is being divided into two parts. Verizon will pay $4.8 billion solely for Yahoo’s core business, leaving behind about 15% of Chinese retail giant Alibaba and a part of Yahoo Japan. Those assets will continue to exist in a separate investment company that will now operate under the name “Altaba”.
The search engine, blog, web portal, news and other core features will still be known by the name “Yahoo”. Only the remaining company will be rebranded as “Altaba”.
The Board of Directors will be reduced to five. The filing states,
“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.”
Also, the stockholders are advised to read Yahoo’s preliminary proxy statement carefully before making any voting decision.
It is important to note that all of this will happen if Verizon actually closes the deal with Yahoo.Inc. Risks and uncertainties may cause actual results to differ materially from the results predicted.