Published By : 09 Jun 2017 | Published By : QYRESEARCH
Yahoo Inc. shareholders approved the acquisition of the company’s core Internet business by Verizon Communication on Thursday, June 08, 2017. As per the initial results from a shareholders’ meeting, the deal is sealed for US$4.48 bn and will be closed on June 13, 2017. The company further stated that it has extended a tender offer from June 13 to June 16 for buying back shares up to US$3 bn. Both the companies have been in talks to close this deal soon as it had been delayed due to the fallout from the data breaches disclosed by Yahoo last year.
Yahoo to be Renamed as Altaba
After the deal, Yahoo will become ‘Altaba,’ a holding enterprise, whose main assets will be its stake in Yahoo Japan Corp. and Alibaba Group. Verizon also plans to merge AOL and Yahoo under the brand name ‘Oath’ and Tim Armstrong, AOL CEO, will be heading it. Nearly 2,100 employees from AOL and Yahoo are going to be laid off from Verizon after the deal closes. However, Verizon will have to shell out a hefty sum for laying off Yahoo employees because of a double trigger provision clause that grants a special overhead to all the employees that lose their jobs after this deal.
In addition to the layoffs, there will be an executive shuffle also. Many of the top-level executives of Yahoo, including the CEO Marissa Mayer, may leave the firm. However, a few of the current executives are expected to take on top positions at the new company.