Sunnyvale-based internet firm, Yahoo Inc., last year faced a number of problems/scandals; having multiple hacks into their systems, secretly scanned US Authorities emails, slashing 10% of its workforce, and also admitted 500 million user accounts had been stolen, making it one of the largest security breaches ever, and so forth.
June 10th, 2016, saw the company auctioning off about 3,000 patents and hired boutique investment bank Black Stone, to oversee the sale. The following month, New York-based broadband telecom company; Verizon Communications Inc. said it was buying Yahoo for $4.8 billion. However, following it’s scandal of 500 million yahoo accounts being stolen, Verizon demanded for $1 billion discount on the deal, or the deal was off. No further reports was had from the two companies.
According to Associated Press, if the proposed $4.8 billion sale of its digital services to Verizon Communications Inc. goes through, Yahoo will adopt a new corporate identity; changing its name to Altaba Inc. and slash the size of its board. All this is proposed to happen after Yahoo turns over its email, websites, mobile apps and advertising tools to Verizon.
Associated Press reports that the new name is meant to reflect Yahoo’s transformation into a holding company for investments in China’s e-commerce leader, Alibaba Group, and Yahoo Japan that are worth about more than $40 billion combined.
If the Verizon deal closes, CEO; Marissa Mayer, Co-Founder; David Filo, Former Director, now the Chairman Emeritus; Maynard Webb, Eddy Hartenstein, Richard Hill and Jane Shaw who are currently on the Yahoo’s 11-member board will resign. Verizon is expected to retain Yahoo’s brand under its ownership.