Yahoo to make major changes
2016 was a huge year in the history of Yahoo. The historic internet search company were rocked by a major cyber security breach, and much of their online business was sold in a big money acquisition. Now, the deal for them to be picked up by communications giants Verizon has been completed and changes are afoot.
Yahoo have announced earlier this week that they will be making a string of changes to the company now that the Verizon deal has been completed. One of the main highlights of the changes is that their current chief executive, Marissa Mayer, will be stepping down as a director of the company.
Mayer, along with David Filo and four other board members, will be leaving the group according to a regulatory filing to a Securities and Exchange Commission (SEC) filing.
Following the sale of their main internet businesses in the $4.8 billion deal, Yahoo will still keep hold of their 15% stake in Alibaba and ther 35.5% stake in Yahoo Japan. However, it has been revealed that the company that keeps these stakes will no longer be called Yahoo. The new name will be Altaba, which is apparently created by joining the words ‘alternate’ and ‘Alibaba’.
Yahoo share price over the last year
As of 10 January: 41.34
SOURCE: Google Finance
The Wall Street Journal reported that: ‘Most of Yahoo’s value stems from its stakes in Alibaba and Yahoo Japan, not the core business sold to Verizon. The core business accounts for 10% of Yahoo’s market value.’
It is certainly an interesting time for Yahoo’s executives, investors and people with an interest in the internet market. The company’s protracted, high-profile sale to Verizon will undoubtedly see the company change the way they approach certain areas. Also, Yahoo’s (now Altaba’s) continued stakes in other companies that are performing well could see great success.
Dominion holds Yahoo in its Global Trends Ecommerce Fund.
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