Yahoo will take on a new corporate existence and slash the size of its board by a half once the asserted $4.8 million sales of its core business to Verizon gets finalized.
The American multi-national tech company considers altering its name to Altaba Inc. once Verizon got hold of its email, mobile apps, advertising tools, and websites. Yahoo CEO Marissa Mayer will resign along with four other directors that are presently on the company's 10-member board following the closing of the sale.
However, the Verizon deal has been threatened by Yahoo's latest findings of two different hacking attacks that ransacked personal details which affected user accounts that reached to more than 1 billion.
Yahoo News said that the sole movement which took place on Monday was the company's director Eric Brandt became Yahoo's chairman. He succeeded Maynard Webb who became the chairman emeritus while waiting for the closure of the Verizon deal.
Based on the agreement, Verizon will acquire Yahoo's operating business while Yahoo's residual business will carry on as a separate company. Yahoo's business that will be left behind entails its venture in Chinese e-commerce behemoth Alibaba and its partnership in Yahoo Japan.
Technically, Yahoo will only sell its core business to Verizon that will leave Yahoo Japan and Alibaba a colossal investment. But with because of the latest hacking incident, it was rumored that the deal has become risky, Mail Online reported.
Hackers could have advanced access to personal information such as telephone numbers, email addresses, dates of birth, passwords, names, and security questions and answers. The possibility of helping cyber criminals to access bank accounts, social media pages, and shopping profile will not be far.
During the SEC filing, Yahoo stated that, ''In light of the fact that following the Closing the Company will operate as an investment company under the Investment Company Act of 1940, the Board has determined that immediately following the Closing, the size of the Board will be reduced to five (5) directors.''
Last week, a Verizon Communications Inc. senior executive mentioned that the company was uncertain regarding its planned acquisition of Yahoo's internet business because of the hacking incident. The attack happened three years ago but was only announced on Wednesday.
Should the acquisition pursue and finalize, Verizon will acquire Yahoo's core business for $4.8 billion.
