Yahoo is in the finally stages of being taken over by Verizon, and so no one will be shocked to see certain changes being made. The company [Yahoo], said on Monday that several of its directors, including CEO Merissa Mayer and co-founder David Filo, will step down as board directors.
As soon as the deal to turn over its ownership to Verizon is completed, Yahoo’s name will be formally changed to Altaba, Yahoo said in a regulatory filing, per WSJ reports. What this means is that all remaining assets, including Yahoo’s stake in Alibaba Group Holding Ltd. And Yahoo Japan will now be Altaba’s; a name formed from a combination of “alternate” and “Alibaba,” a person familiar with the story said in the report.
According to the filing, Eric Brandt who joined Yahoo’s board last March will now become Altaba chairman. Brandt will be joined in the board by four other directors who make up the current board.
Prior to this time, Yahoo’s sale to Verizon was threatened by two major hacks that affected user data. Though, Yahoo made it clear in the filing that Verizon could terminate its purchase or renegotiate the terms as a result of the hacks.
In 2013, 1 billion Yahoo accounts were hacked in what remains the biggest data beach in the company’s history, and perhaps, the biggest online. This happened a couple of months after the company announced what was then regarded as the biggest hack—affecting at least 500 million accounts.
Yahoo said certain user account info, such as names, email addresses, phone numbers, date of birth, hashed passwords, and in some cases encrypted or unencrypted security questions and answers was stolen from its database in 2014. This, according to the company, is believed to be a state-sponsored actor.
Virtually every single Yahoo account holder got an email notifying them of the breach, which dates back to 2013. The company said in a statement on that steps were being taken to “secure those user accounts and we’re working closely with law enforcement.”
Following both hacks, Verizon had issued a statement expressing fears about what could become of the deal between both parties.
“I think we have a reasonable basis to believe right now that the impact is material,” Verizon General Counsel Craig Silliman said of the last data breach, speaking to a small group of reporters at a roundtable. A “material” effect in this case is one that would harm Yahoo’s financial value, and make the Web giant less attractive to purchase.
Other board members expected to leave the board along with Merissa include; Jane Shaw who joined the company in 2014, Eddy Hartenstein and Richard Hill, Mr. Filo and Maynard Webb Jr., a director since February 2012, who was named chairman in August 2013.
Ms. Merissa who joined Yahoo in 2012 and became the company’s Chief Executive Officer, is expected to remain as soon as Yahoo becomes a part of Verizon.