Is it the end of Yahoo? Well not entirely, but the company's name "Yahoo" which has stuck with us for so long will now be changed to Altaba.
Yahoo will be putting up a new identity if the proposed $4.8 billion deal with Verizon Communications is finalized. While it may take some time for the deal to come through, the company is planning to change its name after it hands over its core internet businesses, which include email, websites, mobile apps and advertising tools to Verizon.
However, the change in name will 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.
Techcrunch reports that the size of the Yahoo board will also be slashed and only five board members will remain at Altaba: Tor Braham, Eric Brandt, Catherine Friedman, Thomas McInerney and Jeffrey Smith. The rest of Yahoo's board, including CEO Marissa Mayer, will step down from the newly formed company.
The name change has been mentioned in a filing with the Securities and Exchange Commission. This move, however, indicates that Verizon is going forward with its purchase of Yahoo. While things look positive on one end, there are some obstacles to the deal. The Verizon deal has been jeopardized by Yahoo's earlier computer hacking attacks that stole personal information from more than 1 billion user accounts during two different intrusions that occurred in 2013 and 2014.
And due to this incident, Verizon is reportedly considering for a discount on the 4.8 billion deal after the breaches were disclosed. So who knows, while there are speculations still going on, discounted price may still be announced before the deal closes. The deal might also be canceled outright.