Yahoo, on Tuesday, announced that it has completed the selling of its operating business to Verizon Communications Inc. for $4.48 billion.
Yahoo will change its name to “Altaba Inc.” from Friday, 16th of June 16, 2017, after the company completed the sale of its operating business to Verizon Communications Inc. for USD4.4 billion.
While the deal is still subject to certain pre-closing and post-closing adjustments as provided in the underlying definitive stock purchase agreement017.
Yahoo said its remaining assets consist of an approximately 15% equity stake in Alibaba Group Holding Limited; an approximately 36% equity stake in Yahoo Japan Corporation; cash, cash equivalents and marketable debt securities; certain minority investments; and Excalibur IP, LLC, which owns certain patent assets that were not core to Yahoo’s operating business.
Earlier in July 2016, Verizon had announced its plan to purchase Yahoo’s internet business. But following the announcement of the deal, Yahoo had informed that it had found two data breaches in 2013 and 2014, that had affected more than 1 billion user accounts. The two companies had then reportedly agreed to change the final acquisition price to $350 million less than the original offer of about $4.8 billion. Meanwhile, CNBC quoted a source saying that around 2,100 jobs could be cut due to the Yahoo and AOL integration. This deal puts an end to Yahoo as an operating company and leaves it with its stake in Alibaba and Yahoo Japan, cash and cash equivalent, few minority investments and patents called Excalibur. These assets will be named Altaba. Earlier in March, Yahoo had revealed that its board member Thomas McInerney will be serving as Altaba CEO.
Its retained liabilities include the Company’s 0.00% convertible senior notes due 2018; shareholder litigation; and certain liabilities relating to data breaches incurred by Yahoo. The Company’s headquarters have been relocated to New York City.
The company said Friday 2017 it plans to file with the Securities and Exchange Commission a Notification of Registration on Form N-8A and a Registration Statement on Form N-2 in order to register as a publicly traded, non-diversified, closed-end management investment company under the Investment Company Act of 1940.
According to CNBC, the assets of the company, that include Yahoo Finance would be added with AOL brands like the Huffington Post, under a subsidiary that would be known as Oath. Former CEO of AOL, Tim Armstrong will reportedly be heading the subsidiary that houses more than 50 media and technology brands. Meanwhile, the CEO Marrisa Mayer is also stepping down from her post. Mayer, CEO of the company since July 2012 is expected to receive a payment that is worth more than $23 million.
It must be noted that Armstrong has been at the helm of the integration planning teams ever since the announcement of the transaction. Meanwhile, Oath will begin its operation on Tuesday. In the month of April, Armstrong had announced his leadership team for Oath. He had informed that AOL president and former Yahoo executive Tim Mahlman would be heading the advertising technology, Meanwhile, Yahoo engineer Atte Lahtiranta will be heading tech and Ralf Jacob of Verizon will oversee the digital media department. According to reports, Verizon’s purchase of Yahoo could be seen as a path for it to maximise its reach and boost its presence in mobile and online video spaces against giants like Google and Facebook.