Yahoo, or rather what will be left of it once it has sold its operational Internet assets to Verizon Communications in a US$4,8bn deal, will change its name to the rather obscure Altaba, the US company said in a regulatory filing on Monday. But why Altaba?
It appears that the new name is a portmanteau of the words “alternative” and “Alibaba”, the Chinese Internet giant which will be Yahoo’s (sorry, Altaba’s) biggest asset following the Verizon deal.
That’s according to The Washington Post, which quoted a source “familiar with the company’s thinking” but who couldn’t speak on the record. The thinking, presumably, is that Altaba is positioning itself as an alternative vehicle for investors looking for exposure to Alibaba and fast-growing Chinese Internet market.
Yahoo owns about 15% of Alibaba’s shares. Those shares are worth roughly $35bn.
The renamed company will continue to be listed in New York.
It also holds a 35,5% stake in Yahoo Japan, which is not being sold to Verizon. The company’s patent portfolio will also be auctioned off, The Washington Post said.
Yahoo has also revealed that its CEO, Marissa Mayer, is among six directors who will leave the company’s board of directors following the proposed sale to Verizon.
The deal, which is yet to close, has come under pressure in recent weeks after Yahoo revealed a second major hack of its users’ accounts. — © 2017 NewsCentral Media