12 January 2017
Contrary to media reports, Yahoo has announced that it is not changing its name and that only the part of Yahoo that is being sold to Verizon will be renamed “Altaba”.
Earlier in the week, it was reported that Yahoo Inc. will be completely renamed Atlaba and that CEO, Marrisa Mayer will step down.
“Those headlines are misleading. They oversimplify Yahoo’s filing. The Yahoo that you know is not changing its name” remarked Daniel Roberts, a writer at Yahoo Finance.
In an article published on Yahoo Finance, Roberts explained that the company that will change its name to Altaba is the entity that was formerly being called “RemainCo,” the entity that will remain after Verizon closes its acquisition.
That entity will contain a 15 per cent stake in Alibaba, a 35 per cent stake in Yahoo Japan, and a small portfolio of patents called Excalibur. It will arguably amount to a holding company for shares of Alibaba, basically an alternative Alibaba, hence “Altaba.”
In July 2016, Verizon agreed to buy Yahoo’s search engine and web portal for $4.83bn back. However, Yahoo’s shareholders held on to the company’s lucrative investments – including a 36 per cent stake in Yahoo Japan and a 16 per cent stake in Alibaba – and patent portfolio. This remaining entity has no product and no staff members.
The Verizon deal, which puts an end to Yahoo’s 21-year history as an independent company, still needs to be approved by regulators and is expected to be finalised in the first quarter of 2017.
The Changes expected:
- If the Verizon deal goes through, as expected, Marrisa Mayer, Yahoo’s CEO will step down from its board, but will continue to be CEO.
- The Yahoo-branded web portal, search engine, email service and news services will continue to exist but will be integrated with Verizon-owned AOL.
- Yahoo Core, the assets that Verizon is buying and the Yahoo that the general public knows – email, search, and Yahoo Media (including Yahoo Finance) – will not change its name.
- Yahoo Finance, Yahoo News, and Yahoo Sports will not start going by the name Altaba; the Yahoo media brand will remain intact. There will be no Altaba Finance.
Altaba, roughly translates to “father of Ali” in Chinese. The original Yahoo name, meanwhile, is an acronym for “Yet Another Hierarchical Officious Oracle.”
Additional Notes: Yahoo Finance, Guardian Tech – theguardian.com/technology
Author: Timilehin Boyinde
Oluwatimilehin Boyinde is a research writer and a social media strategist. A public affairs analyst, he writes about history, politics, sports, life matters and technology. He is passionate about happenings in Local and international political arenas. He is an avid Manchester United fan and an unapologetic Nigerian.