×
You will be redirected back to your article in seconds

Marissa Mayer to Resign From Yahoo Board if and When Verizon Deal Closes

Company to change name to 'Altaba Inc.' after hoped-for sale of operating businesses to Verizon is completed

Yahoo CEO Marissa Mayer will resign from the company’s board of directors — along with six other board members — in the event that Verizon’s deal to buy the Yahoo internet businesses closes.

Yahoo Inc., which made the disclosure Monday in an SEC filing, will become primarily an investment holding company if and when the Verizon sale is completed. At that point the company, whose major asset will be shares of China’s Alibaba Group, will rename itself “Altaba Inc.” With the planned change, Yahoo Inc. appointed Eric Brandt chairman effective Jan. 9, with previous chairman Maynard Webb becoming chairman emeritus; Webb also plans to resign after the closure of the Verizon deal.

What Mayer does next remains in question. For now, she remains CEO of Yahoo Inc. Last July, she said in a memo to Yahoo employees that she expects to remain with the company after the Verizon transaction: “I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.” But it’s not clear what role she would have under Verizon’s ownership, as AOL CEO Tim Armstrong is set to manage the combined AOL-Yahoo organization if the deal becomes official.

Mayer, a former top Google exec, was recruited in 2012 to turn around Yahoo but the company’s finances have continued to deteriorate under her tenure. Per the terms of her Yahoo contract, Mayer would receive a severance package worth about $55 million if she’s terminated within a year of the company being sold.

Meanwhile, there’s still uncertainty about how or even whether Verizon will proceed with its planned $4.8 billion takeover of the flagging internet businesses after Yahoo disclosed two massive breaches of user data. Verizon may decide to terminate the agreement or seek a reduction in the price tag, pending its review of the hacks in which info on more than 1 billion Yahoo user accounts was stolen more than two years ago.

In its filing Monday, Yahoo said it will reduce the size of the board to five directors following the closure of the Verizon deal. Brandt, along with Tor Braham, Catherine Friedman, Thomas McInerney and Jeffrey Smith, will continue on the board of Altaba Inc. The following current board members intend to resign, in addition to Mayer and Webb: David Filo, Eddy Hartenstein, Richard Hill and Jane Shaw.

Popular on Variety

More Digital

  • MINDHUNTER

    Netflix's Podcast Slate 'Deepens' Space Around Original Content, Programmers Say

    It should come as no surprise that, in its quest to become a full-blown entertainment ecosystem, Netflix has built a roster of podcast programming to complement its scores or original series and films. The programs recruit top talent and hosts to hang out and talk about the streaming giant’s TV and film content. It’s a [...]

  • Netflix-logo-N-icon

    Netflix Is Testing Human-Curated 'Collections'

    Netflix, a company powered by the strategic use of data, relies on artificial intelligence to suggest new content that its streaming customers are likely to be interested in. Now it’s looking to potentially add a human touch: The company has launched a limited-scale test of “Collections,” a new feature that presents groups of movies and [...]

  • wolves in the walls emmy

    Neil Gaiman VR Experience 'Wolves in the Walls' Wins Primetime Emmy

    “Wolves in the Walls,” the virtual reality (VR) experience based on Neil Gaiman’s children’s book by the same name, has been awarded with a Primetime Emmy for outstanding innovation in interactive media. The experience has been produced by San Francisco-based immersive entertainment startup Fable, which puts a big effort on making the viewer a participating [...]

  • The Void San Francisco

    The Void Teams Up With Sony Pictures for New Location-Based VR Experience

    James Murdoch-backed virtual reality (VR) startup The Void has teamed up with Sony Pictures Virtual reality to produce a new location-based VR experience, according to Curtis Hickman, the startup’s chief creative officer. Hickman revealed the partnership in a conversation with Variety this week, during which he also outlined plans to bring more original IP to [...]

  • US President Donald J. Trump speaks

    Apple Stock Down 4.6% After Trump ‘Orders’ Companies to Leave China

    Apple’s share price was down around 4.6% Friday at the close of the market, to $202.64 per share, after President Trump took to Twitter to “order” U.S. companies to leave China. The slide came amid a market-wide sell-off, with the NASDAQ sliding 3%, and the Dow dropping 623 points. Trump’s edict was a response to [...]

  • Former head of CAA China Peter

    Peter Loehr to Spearhead Asia Expansion of Genies Avatar Venture (EXCLUSIVE)

    Peter Loehr, the former head of CAA in China, and seasoned music executive John Possman have been tapped by digital avatar company Genies to lead its expansion into Asia. The company’s proprietary avatar technology allows users to express ideas, thoughts and feelings in a different way from text, audio and video. Within the app and [...]

More From Our Brands

Access exclusive content