Yahoo shareholders have finally approved their company’s impending sale to Verizon. The approval took place on Thursday, with the former Internet giant’s shareholders authorizing the sale of its core Internet business to Verizon.
As per the initial reports that are making their way to us from the meeting, the sale will go forward for the initially agreed price of $4.4 Billion. To be fair though, that is not the price the company initially agreed upon though as Verizon knocked off a few hundred millions after Yahoo was involved in a major scandal that saw several hundred million accounts go missing.
The breaches were actually the reason that the deal has not been confirmed until now. Meanwhile, Yahoo also said it had extended a tender offer to buy back up to $3 billion shares to June 16 from June 13.
Under the terms of the deal, a large portion of Yahoo is to be assimilated into Verizon’s processes. The remaining portion, which is to be comprised mainly of Yahoo’s holdings in Alibaba, will be renamed Altaba. The latter will be a holdings company with primary stakes comprising of its stake in Alibaba Group Holding Ltd (BABA.N) and a 35.5 percent stake in Yahoo Japan Corp (4689.T).
Meanwhile, there are indications that Verizon may be about to layoff a significant portion of its workforce in preparation for the acquisition. We can expect more details on the topic to come out soon.
