That, Yahoo was walking on very thin ice was not in doubt, the company (once internet giant) could soon seize to exist anymore. This news came forth following the recent revelation of a massive hack (the biggest in the history) that took place in August 2013, a separate incident from the September hack. It emerges that Yahoo did not disclose the August hack, but instead only revealed the September hack.
Yahoo says that up to a billion users’ accounts were compromised in the August 2013, hack. Something that made Verizon, which was in the process of acquiring the company rethink about the Yahoo acquisition deal. In a statement, Verizon said they will review the Yahoo situation and any “new development before reaching any final conclusions”.
The surfacing of the news that Verizon is rethinking about acquiring Yahoo also revealed new information that should the deal go through. Part of Yahoo will be renamed to Altaba after Verizon has acquired all its emails, websites, mobile apps, and advertisement tools.
The name, Altaba, is meant to reflect well with the Chinese e-commerce leader Alibaba Group and Yahoo Japan, a market said to be worth about $40 billion. It has also emerged that the current CEO Marissa Mayer and Yahoo co-founder David Filo alongside four other board member will resign before the Verizon buyout pulls through. That is according to statement filings at the Securities and Exchange Commission (SEC).
In part, the filling at SEC also reveals: “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 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.”