Verizon Communications Inc. (NYSE:VZ) is on the verge of completing the process of acquiring Yahoo! Inc. (NASDAQ:YHOO). A filing with the Securities & Exchange Commission reveals that the 21-year old company will split into two companies. The results will be a separate holding company and content and service enterprise. The media conglomerate is eying the latter for a whopping $4.8 billion. The acquisition plans were announced back in July by the company’s CEO Marissa Mayer but she did state in a memo to employees here intentions of remaining in the company after the buyout.
However, it is likely that things will take a different turn. There is a looming speculation of having Mayer and her team fired after the completion of the acquisition deal. They were offered a provision known as a “double trigger”, which comes with a handsome severance plus large chunks of their unvested stock after termination or closure of the deal.
But Yahoo’s double-trigger is unusual
More often than not double-triggers affect founders and senior managers of a company. This is not the case for this particular one according to Business Insider. It is covering all of the employees at the company. All of them will cash out on years worth of unvested stock. This will be instant but if Verizon fires them within one year after the closure of the deal will be entitled to more cash payment.
Many of execs on Mayer’s leadership team are not taking this kindly. Word has it that they are in consultation with their lawyers to obtain a clearer understanding of their exact entitlements in the event Verizon fired them.
But it remains uncertain how long Mayer will stick around
Guardian reports that the $4.8 billion acquisition deal is likely to be finalized by the second quarter of this year. Its finalization will welcome the new boss AOL CEO Tim Armstrong. Of interest to follow is how fast Verizon will swallow the heavy cost of laying off Yahoo staff.
On several occasions, Mayer has stated that she will still remain at Yahoo after the deal closes but this still hangs in the balance. This is because the only thing mentioned in the SEC filing is her resignation as a member of the board of directors.
Meanwhile, Verizon’s executive Marni Walden explains, “Right now as I’ve said, there’s a lot of stuff we don’t know. Obviously, with the second breach, there’s a lot of work that has to happen, so I’m not gonna put a timeframe on it. I honestly don’t have a timeframe. We don’t have a desire to have it drag on forever. “
In the meantime, Yahoo’s stock closed at $43.93 witnessing an increase of $0.15 or 0.35% while that of Verizon closed at $47.99 a fall of $0.39 or 0.81%.