In a pair of documents filed with the U.S. Securities and Exchange Commission yesterday, Yahoo revealed that CEO Marissa Mayer will resign after core parts of her company are acquired by Verizon as expected sometime early this year. The unacquired pieces of Yahoo’s business will be renamed “Altaba” after the deal is completed, according to the filings.
An unnamed “person familiar with the company’s thinking” said the name comes from a blend of the words “alternative” and “Alibaba,” The Washington Post reported yesterday. The parts of Yahoo not being purchased by Verizon include shares in Yahoo Japan and the Alibaba Group, the Chinese e-commerce giant.
In July, Verizon announced that it planned to acquire Yahoo’s operating business for $4.83 billion in cash to boost its position in mobile media technology and add new sources of digital ad revenues. However, the course of the transaction has been complicated by subsequent news of two major hacks on Yahoo — taking place in 2013 and 2014 — that affected more than 1 billion user accounts.
Yahoo’s Long-Declining Fortunes
Mayer (pictured above), a former Google executive, was brought on to lead Yahoo in 2012, as the company was struggling with layoffs and restructuring in an attempt to turn around its declining Internet fortunes. Four years earlier, Yahoo had rejected a $44.6 billion acquisition offer by Microsoft. Subsequently, Yahoo’s revenues dropped from nearly $7 billion in 2007 to $4.4 billion in 2011.
Following the close of Verizon’s purchase this year, several other executives, including co-founder David Filo and board members Eddy Hartenstein, Richard Hill, Jane Shaw and Maynard Webb, are expected to leave Yahoo.
Hartenstein is a former president and CEO of the Tribune Company, which last year was widely derided and mocked for renaming itself “tronc” (Tribune online content). Yahoo’s announcement yesterday that its remaining properties…