Yahoo/Verizon deal agreed as 2,100 employees face the axe
The deal will now see CEO Marissa Mayer depart with $264 million
Yahoo has said its investors have agreed to the proposed sale of its operating business to Verizon for $4.48 billion (3.5bn), following the results of a preliminary stockholder meeting on Thursday.
Yahoo is to form part of Verizon's recently formed Oath media division, joining AOL, the Huffington Post, Techcrunch, Tumblr and Brightroll. The agreement means that a deal is likely to close by 13 June, according to a company statement.
As previously reported, Yahoo will undergo a name change, registering as an investment company called 'Altaba Inc'. Under the new name, the company's primary assets will be tied up in a stake in Alibaba Group, while retaining a 35.5% stake in Yahoo Japan. The company also said that has extended the date of an offer to buy back up to $3 billion in shares from 13 June to 16 June.
Following the news of two massive cyber attacks in 2013 and 2014, affecting over 1 billion customer accounts, the takeover offer was revised down by $350 million.
Yahoo CEO Marissa Mayer will also be stepping down from her position and will not be joining the newly formed Altaba.
The news coincides with reports that Verizon is preparing to lay off 2,100 employees following the acquisition, which accounts for 15% of Yahoo's 8,600 workforce.
Employees won't be leaving entirely empty handed, as their accumulated stock shares rose on Thursday by 10%. The surge also means that CEO Marissa Mayer, who won't be joining the newly formed Altaba, will depart with $264 million, up from $239 million last week.
Substantial severance packages are also being forked out to other Yahoo executives. Chief revenue officer Lisa Utzschneider will leave with around $22 million, while Ken Goldman, the chief financial officer, will receive a reported $12 million.
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