The sale of its internet business is the end of Yahoo as we know it
If Yahoo’s $4.8 billion sale of its internet business to Verizon goes through, big changes are coming to the company.
Chairman and CEO Marissa Mayer will step down alongside five other directors from Yahoo’s board. And the company will be renamed Altaba, a portmanteau of “alternative” and “Alibaba,” according to Quartz. This is a nod to the company’s 15 percent stake in Chinese e-commerce company Alibaba, which will be one of its biggest assets if the Verizon deal goes through.
Yahoo’s sale of its core business is the end of an experiment that seemed like it would save the company from irrelevance. When Mayer, a former Google exec, was appointed Yahoo’s chief executive in 2012, she brought with her a buzz of excitement. Yahoo had annual revenues of around $4 billion, and Mayer started acquiring companies like analytics firm Flurry, news app Summly and the popular blogging platform Tumblr, which came with a $1 billion price tag.
But after a few tumultuous years of false starts coupled with a pair of hacking scandals, the second of which affected more than a billion Yahoo user accounts, shareholders deemed Yahoo essentially worthless beyond its 15 percent stake in Alababa and 35.5 percent stake in Yahoo Japan. If the Verizon deal goes through, Altaba will be a holding company for just those.