What: Yahoo will be renamed Altaba Inc. following Verizon’s US$4.83 billion acquisition of the company.
Why it matters: Marissa Mayer is stepping down from Yahoo’s board after the closing of its deal along with 5 other directors.
Yahoo will be renamed as Altaba and CEO Marissa Mayer is stepping down from the board after the closing of its deal with Verizon Communications.The name is a combination of the words “alternate” and “Alibaba,” according tothe Wall Street Journal.
Yahoo has a US$4.83 billion deal with Verizon to sell its core Internet business, which includes its digital advertising, email and media assets.
After the sale, the company will change its name to Altaba from RemainCo, Yahoo said in a regulatory filing on Monday. Altaba’s primary assets will be a 15 per cent stake in Chinese e-commerce company Alibaba Group and 35.5 per cent stake in Yahoo Japan.
Mayer is not the only one to depart from the combined company, as cofounder David Filo, Eddy Hartenstein, Richard Hill, Jane Shaw, and Maynard Webb will be leaving. Eric Brandt will become the chairman of the board.
Shares in Yahoo were up today 0.27 percent to close at US$41.34, while Verizon’s were down 1.09 percent at US$52.68.