On June 13, 2017, Yahoo is expecting to close a deal with Verizon Communications Inc. Yahoo shareholders have already decided to approve the sale of its core business assets to Verizon as preliminary results after holding a shareholder meeting. The agreed amount totals to $4.48 billion.
Yahoo’s New Name
After the Verizon deal, the new name of Yahoo will be Altaba. It will be regarded as a holding company in which its assets will become part of Alibaba Group Holding Ltd. The deal came into the picture after investors headed by Starboard Value LP lost their trust with the current CEO of Yahoo, Marissa Mayer. She was hired back in 2012. Actually, she was the one who stimulated the idea of selling Yahoo’s core assets. After the deal is completed, she will also back down from position, as expected.
Yahoo’s Major Issue
Last August 2013, it was confirmed that over 1 billion Yahoo user accounts were exploited. It was the largest breach ever recorded in the history of online security. Another similar event was also reported, saying that the following year, there are 500 million accounts affected after another breach took place.
Then in February 2016, 1,600 employees were dismissed by Yahoo.
Yahoo Not Anymore a Standalone Company
A new venture led by Verizon called Oath under CEO Tim Armstrong will include Yahoo and AOL. A rebrand of Yahoo will happen anytime soon.
Verizon is all hopes up that it can use data from Yahoo (with an estimate of over 200 million monthly visitors) and AOL (with estimated visitors including its own database having 100 million subscribers for it to offer several services for advertisers.
Verizon’s Plans after Acquisition
Should the planned buying of the assets will push through, Verizon Communications Inc. already stated its plans of cutting of at least 2,000 jobs. The planned job cuts will be coming from AOL and some Yahoo units. There are 14,000 staff working at Yahoo and AOL, hence, a chunk of about 15% will be reduced. There are sources specifying that most of the jobs are based in California and a few are located outside the United States.
The extension should the deal would not be close this coming Tuesday, will be until the 16th.
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