Yahoo as you know it today is on the verge of disappearing. Verizon is currently in the midst of acquiring the “core business” of Yahoo. The left over parts of Yahoo will end up being combined into a new entity called Altaba Inc. The name, Altaba, comes from combining “alternate” and Alibaba. This new entity, made up of the multi-billion dollar stake in Alibaba and Yahoo Japan, according to analysts, will likely retain almost two-thirds of the current market value of Yahoo.
An SEC “8-K” filing indicates that several key executives will be leaving Yahoo upon completion of the deal. Among those that are leaving are current Yahoo CEO Marissa Mayer, David Filo, a co-founder of Yahoo, along with four other directors. The filing states, [T]he 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.”
Marissa Mayer became the CEO of Yahoo in 2012, and faced an uphill battle from day one. She worked to restore Yahoo’s core display ad business, as well as its paid search business. She was successful in helping both see growth and develop into strong assets, however, this was not enough to satisfy investors.
One big obstacle that Yahoo has always faced are two of its competitors, Facebook and Google. The competition with these two juggernauts is fierce, but will Verizon’s brand name be enough to infuse the Yahoo core to be competitive with Facebook and Google? We will have to wait and see.