Yahoo Stock: This Is the End of Yahoo!

yahoo stockThe Death of Yahoo Stock

Yahoo! Inc (NASDAQ:YHOO) is dead, long live Altaba! As the deal between Yahoo and Verizon Communications Inc. (NYSE:VZ) to sell off the tech company Yahoo’s core business to the wireless giant Verizon finalizes, what’s remaining after Verizon has picked the choicest bits will be known as Altaba.

Yahoo stock was up two percent on Tuesday as U.S. Securities and Exchange Commission (SEC) filings revealed further details about the deal, like the new name and changes in the board.

As revealed earlier, several board members will step down as the company shaves the total number of board seats. Among those departing will be CEO Marissa Mayer and Yahoo co-founder David Filo, following the completion of the acquisition deal.

This proposed merger was in the works for a while, and the news about the potential deal had an affect on Yahoo stock last year, as I wrote earlier:

Yahoo stock shot up about 14% in 2016, with many investors eyeing the merger with Verizon as a positive move for the struggling tech company. Marissa Mayer was brought in as CEO to right the ship in 2012, but the former tech giant has largely failed to recover its position as a dominant force in the industry. The deal with Verizon is valued at $4.8 billion.

The conversion of Yahoo! into Altaba will create a holding company comprised of Yahoo’s 15% stake in Alibaba Group Holding Ltd (NYSE:BABA) and its 35.5% stake in Yahoo! Japan. The name itself is a portmanteau of “alternative” and “Alibaba,” the massive Chinese online retailer. (Source: “’Altaba’ is the perfect name for what has become of Yahoo,” Quartz, January 10, 2017.)

This will mark the final nail in the coffin for the embattled Yahoo stock.

For more details about what led up to the current situation, see below, from my earlier reporting on Yahoo:

Yahoo stock was in need of some good news regarding the merger, especially following a massive data breach that occurred in mid-December. The hack led some to question whether Verizon would renegotiate or even cut the deal altogether, but the SEC filings that came in on Monday show that the transition is still underway.

Marissa Mayer has been a controversial executive since she took the helm at Yahoo. While some see her as having been put in an impossible position, trying to revitalize Yahoo stock, others see her as having largely mismanaged the company and led it down multiple dead-ends.

Yahoo stock climbed about 37% while under Mayer’s leadership. Regardless of what one thinks of her, the finalization of the deal between Yahoo and Verizon will put an end to one of the tech world’s longest and most contentious narratives. Whether the company could have been saved by the right leader or whether it was doomed from the start, that will be left to the history books.