After Verizon acquires the core business of Yahoo! Inc. (NASDAQ:YHOO) including some apps, sports verticals, and the email service, the remaining part will be named Altaba. This is according to security filings that the company filed on Monday. A source familiar with the matter says the new name is an amalgamation of the word alternative and the name of the Chinese online retail giant, Alibaba Group Holding Ltd (NYSE:BABA).
Suzanne Philion, a spokesperson for Yahoo, however refused to say anything concerning the change of name.
“We are confident in Yahoo’s value and we continue to work towards integration with Verizon,” said Philion in a statement.
What Yahoo will be left holding
Currently, Yahoo has a 15% stake in Alibaba which translates to around $35 billion. Borrowing part of its new identity from Alibaba makes sense because after Verizon has bought out the other assets, Yahoo will mainly exist as a holding vehicle for Alibaba’s stock. This change of fortunes would have been unthinkable a few years ago when Yahoo was an internet giant. Some glory of its former years still remains as it ranks third in traffic of all the internet properties in the U.S.
Besides a significant stake in Alibaba, the new firm will also possess 35.5% of Yahoo Japan besides any cash Yahoo will be holding. A patent portfolio of the company will be auctioned off separately.
CEO and co-founder to step down from board
In the same Monday filings, Yahoo disclosed that the chairperson of its board is now Eric Brandt. Brandt was previously the chief financial officer of Broadcom, a semiconductor company. The position of the chief executive officer will continue to be occupied by Marissa Mayer. She will, however, quit once the deal is concluded. Unconfirmed reports say she will take up a position at Verizon. David Filo, who co-founded the company alongside Jerry Yang in 1994 will also step down from the board of Yahoo.
In Thursday’s trading, session shares of Yahoo! Inc fell by 1.13 percent to close the day at $42.11. Shares of Alibaba Group Holding Ltd also edged downwards by 1.05 percent to close the day’s session at $95.90