In a SEC filing, Yahoo announced that several members of its board will resign following the completion of the $4.8 billion sale of its core assets to Verizon. Six people will leave the board, the most prominent name being Marissa Mayer, Yahoo's current CEO.
Mayer was employee number 20 at Google and held key roles in many of the search giant's most prominent products. She jumped ship to Yahoo in 2012 where she presided over the downfall of this former Internet giant. Extreme lows of Yahoo include the fact that the company was the victim of the two single largest hacks in history and didn't even discover the intrusions until years after the fact.
In connection with the previously announced pending sale by Yahoo! Inc. (“Yahoo” or the “Company”) of its operating business (the “Sale Transaction”) to Verizon Communications Inc. (“Verizon”) pursuant to the terms of a Stock Purchase Agreement, dated as of July 23, 2016, between the Company and Verizon, the Board of Directors of the Company (the “Board”) has made certain determinations with respect to the size and composition of the Board following the closing of the Sale Transaction (the “Closing”).
In light of the fact that following the Closing the Company will operate as an investment company under the Investment Company Act of 1940, the 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.
To facilitate the transition of the Company to an investment company following the Closing, the Board also determined that, effective January 9, 2017, Mr. Brandt will become Chairman of the Board and Mr. Webb will become Chairman Emeritus of the Board.
After the deal with Verizon closes, the company currently known as Yahoo will change its name to Altaba and will become a publicly traded investment firm. Key assets that remain include a huge stake in Alibaba, a stake in Yahoo Japan and intellectual property. Especially the stake in Chinese Internet giant Alibaba is a prized possession, Altaba owns around 15 percent of Alibaba (NYSE:BABA), corresponding to a value of almost $35 billion.
The Alibaba shares are the result of a $1 billion investment in 2005, which gave Yahoo a 40 percent stake in the company. In 2012, Alibaba bought back half the stake in a deal valued at $7.1 billion.
The Board also determined that, following the Closing, it intends to cause the Company’s name to be changed to Altaba Inc.