Yahoo! Inc. (NASDAQ:YHOO) will Change Name to Altaba after $4.8 billion sale to Verizon

Internet giant Yahoo! Inc. (NASDAQ:YHOO) announced on Monday that it will whittle down its board after finalized its deal with Verizon Communications Inc., and several longtime directors, including Chief Executive Marissa Mayer and co-founder David Filo, will not remain as directors.

The company also said that following the sale of its core internet business, it will change the name to Altaba Inc. from RemainCo, Yahoo said in a regulatory filing. Altaba’s outstanding assets comprise Yahoo’s stake in Alibaba Group Holding Ltd. and Yahoo Japan.

The name Altaba is derived from the words “alternate” and “Alibaba.”

Meanwhile it also said that Mr. Eric Brandt, who joined Yahoo’s board last March and is the former CFO of Broadcom Corp., will become chairman of Altaba. He will be joined by four other directors who are currently on Yahoo’s board, including Thomas McInerney, who was part of the independent committee of Yahoo directors running the auction process last year.

All these changes are expected following the close of the almost $4.8 billion sale to Verizon, which has been threatened by two huge breaches of Yahoo’s user data. In the filing, Yahoo mentioned the fact that there are chances that Verizon could dismiss its purchase of Yahoo or renegotiate the terms because of the hacks.

In the recent days Verizon has looked less convinced that the deal will go through especially following a second breach of one billion accounts was exposed last month. The breaches could be a material event that would allow Verizon to change the terms of the deal, executives have said.

According to the statement, Six Yahoo directors are on the exit list following the Verizon sale, including Ms. Mayer, Mr. Filo and Maynard Webb Jr., a director since February 2012, who was named chairman in August 2013. Mr. Webb, as of Monday, became chairman emeritus.

Yahoo! Inc. (NASDAQ:YHOO) fears that Verizon deal could collapse following data breach

Yahoo! Inc.(NASDAQ:YHOO) confessed for the very first time that there is a possibility of Verizon backing out of the $4.8 billion takeover agreement, mainly due to the gigantic information breach the company publicized in September.

Internet giant mentioned in the “risk factors” section of its latest results that a there are number of risks and doubts around the incomplete Verizon deal that could possibly make it fall through.

One of risk factors point which were unveiled on Wednesday said that ” Verizon may assert, or threaten to assert, rights or claims with respect to the Stock Purchase Agreement as a result of facts relating to the Security Incident and may seek to terminate the Stock Purchase Agreement or renegotiate the terms of the Sale transaction on that basis.”

These risk factors are the worst-case scenarios businesses are required to comprise in their quarterly and annual reports. So this doesn’t certainly mean Yahoo sees Verizon withdrawing from the deal due to the security breach as an instant risk. However, it is still good enough for a gossip corner that Yahoo’s cited this likelihood for the first time in public.

In the meantime, The Company restated that the security break didn’t have any “material adverse impact” on the business, even though it hinted it could cost the company more in the near future, as it faces at minimum 23 litigations connected to the data breach.

“We are confident in Yahoo’s value and we continue to work towards integration with Verizon,” Yahoo’s representative told us in a statement.

Yahoo ironically revealed back in September that at least 500 million user account credentials had been embezzled from it in late 2014. Nonetheless Yahoo CEO Marissa Mayer said at the time that the Verizon deal was still on track in its October earnings report.

Meanwhile Verizon’s lawyer Craig Silliman recently said that the data hack could have “material” impact on the Verizon’s acquisition of Yahoo! Inc. (NASDAQ:YHOO).