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.