Yahoo to change name, trim board if Verizon deal gets done

Marissa Mayer
FILE - In this Jan. 7, 2014, file photo, Yahoo president and CEO Marissa Mayer speaks during the International Consumer Electronics Show in Las Vegas. Yahoo announced Wednesday, Dec. 9, 2015, it is scrapping its original plan to spin off its prized stake in China’s Alibaba Group and will instead break off the rest of its business into a new company. (AP Photo/Julie Jacobson, File)

SAN FRANCISCO (AP) — Yahoo will adopt a new corporate identity and slash the size of its board if the proposed $4.8 billion sale of its digital services to Verizon Communications goes through.

The company plans to change its name to Altaba Inc. after it turns over its email, websites, mobile apps and advertising tools to Verizon. 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.

Yahoo CEO Marissa Mayer, co-founder David Filo and four other directors currently on the company’s 11-member board will resign after the planned sale to Verizon closes. Verizon is expected to retain Yahoo’s brand under its ownership.

But the Verizon deal has been jeopardized by Yahoo’s recent discovery of two computer hacking attacks that stole personal information from more than 1 billion user accounts during two different intrusions that occurred in 2013 and 2014.

Verizon is reassessing whether it should renegotiate the sales price or perhaps cancel the deal light of hacking revelations that could trigger a backlash among Yahoo users upset about sensitive personal details being stolen. Yahoo is fighting to keep the deal intact.

In the only change that took effect Monday, Yahoo director Eric Brandt became the company’s chairman. He replaces Maynard Webb, who becomes chairman emeritus until the Verizon deal closes.

Brandt, the former chief financial officer of chipmaker Broadcom, joined Yahoo’s board 10 months ago. Webb had been Yahoo’s chairman for nearly four years. If the Verizon deal closes, Webb will leave the board along with Mayer, Filo and Eddy Hartenstein, Richard Hill and Jane Shaw.

KXAN.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s