Last Monday, on January 10, 2017 Yahoo declared that soon it will merge with American telecom giant Verizon.
American telecom company Verizon first initiated their achievement of Yahoo’s score Internet business in July 2016 for an annual payout of $4.8 billion. It is expected to get completed by the end of first quarter of 2017.
But there lies a fair possibility of America’s Verizon renegotiating for the merge via a rebate in the Stock Purchase Agreement. This is because of a cyber attack incident which occurred few months ago, last year. The attack has somehow compromised the personal details of more than a billion Yahoo mail users.
The company was always known for his search engine services. But the attack has questioned its ethicality. However once the report is finished, Verizon is expected to merge Yahoo-branded web portal, search engine, email service, news services including the popular Yahoo Finance and Sports with AOL, the media company which generated $4.83 billion in 2015 for the parent comoany.
After Verizon merger, the remaining Yahoo entity, which owns 15 per cent stake in Chinese e-commerce behemoth Alibaba and a 35.5 per cent stake in the company’s Japan venture, which is jointly owned by Softbank, will run as a separate company under the new moniker ‘Altaba’. Though this is not finalized yet since the board of directors are not able to be in an unison.
“In light of the fact that following the Closing, the Company will operate as an investment company under the Investment Company Act of 1940, the 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.” said Yahoo. Inc in its recent interview.
With this news on air, the company is soon to merge with Verizon and only its 15 percent of parent company’s share will run under the brand name of Altaba. Inc. Yahoo was best known for its search engines. However it was a constant competitor for Google. But With Google popularity may be Yahoo had to take a step down.