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New York: Sun is setting down on one of the iconic internet companies that were synonymous with the World Wide Web itself. Yahoo that has been one of the most recognized tech companies in the world since its inception more than two decades ago is all set to have a change of name.
Sunnyvale, California Yahoo Inc. founded by Jerry Yang and David Filo in January 1994 is known as the pioneer of the early internet era in the 1990s. While the company may continue to live, it will no longer be known as Yahoo!.
The tech giant that has been struggling for many years said it is set to rename itself Altaba. The change of the name will become effective as soon as the deal with Verizon Communications is completed.
Meanwhile reports suggest that that President and CEO of Yahoo, Marissa Mayer, will have to leave the company. But she may well walk away with as much as $123 million. Marissa Mayer will not be the only one leaving the company. The deal stipulates that she along with another five longtime directors will have to step down from the board.
It should be clear here that when Verizon gave its nod to purchase the company for $4.8 billion in July 2016, it planned to purchase merely Yahoo’s core Internet businesses, which include its email service, sports verticals and various apps.
On the other hand, the remaining part of the struggling tech giant would essentially be its ownership in the very valuable Chinese Internet giant Alibaba. When the deal closes, the remaining part will change its name to Altaba, the company announced in security filings on Monday. The sale is expected to be completed by late March.
Despite its ongoing struggle, the company remains very rich. Even now Yahoo owns as much as 15 percent of Alibaba, holdings that are worth about $35 billion. Besides, the company also owns a 35.5 percent stake in Yahoo Japan, the company’s Japanese affiliate, and Yahoo’s cash, and a patent portfolio that is being sold off in a separate auction.