ViewsHeadlines Tech Desk,
New York: There has been serious misunderstanding surrounding Yahoo and Altaba. Rumors have been doing the rounds that Yahoo is all set to change its name to Altaba and that one of the oldest internet companies will cease to exist after being sold to Verizon.
Nonetheless there seems to be serious misunderstanding in this regard. While the holding company of Yahoo will undergo a metamorphosis of sorts and will be known as Altaba, the search engine as we know it along with its email, news and other subsidiaries will continue to be known as Yahoo. There is no denying that Verizon has bought the company with the sole purpose of using the large number of people who are subscribers of one or the other services that the tech giant offers.
While the part of the company that is not being sold to Verizon is with tens of billions of dollars, the main business of the company will be going to Verizon. This also means that Yahoo President and CEO Marissa Mayer will continue to occupy Yahoo CEO post even after Altaba is chopped off Yahoo. The new name is meant to be a combination of the words “alternative and Alibaba”, according to a person familiar with the company’s thinking, who didn’t want to be named because the individual was not authorised to speak on the record about the name change.
Mid last year US telecom giant Verizon agreed to buy Yahoo’s search engine and web portal for USD 4.83 billion. However, Yahoo’s shareholders held onto the company’s lucrative investments – including a 36 percent stake in Yahoo Japan and a 16 percent stake in Alibaba – and patent portfolio. This remaining entity has no product and no staff members. According to an SEC filing released today, that entity will, provided the Verizon deal goes through, be known as Altaba and Yahoo CEO Marissa Mayer, along with five other board members, will resign from its board.
This means that Yahoo-branded web portal, search engine, email service and news services will continue to exist but will be integrated with Verizon-owned AOL. “The Yahoo brands, such as Yahoo Finance and Yahoo Sports, won’t go away,” AOL spokeswoman said in July. The Verizon deal, which puts an end to Yahoo’s 21-year history as an independent company, still needs be approved by regulators and is expected to be finalized in the first quarter of 2017.
Nonetheless the disclosure of a massive data breach that impacted more than one billion accounts has raised questions over whether the deal will be finalised. The company revealed in early December that an “unauthorised party” broke into Yahoo accounts in 2013, in the largest such breach in history. The number of accounts was double the number implicated in a 2014 breach that the internet company disclosed in September and blamed on hackers working on behalf of a government.
It should be noted that Marissa Mayer who joined Yahoo as CEO in 2012 from Google has completely failed in her role as the company CEO. She was tasked with turning the company around, but failed to do so. At the start of 2016 the company reported a USD 4.4 billion loss following expensive gambles such as the USD 1.1 billion acquisition of Tumblr in 2013. Most of her decisions have been criticized by market analysts and were called reckless.