Yahoo announced that its stockholders have approved the sale to Verizon of the company’s operating business, in a deal worth about $4.5 billion, with the transaction expected to close on Tuesday, June 13.
As previously announced, following the closing of the deal, Yahoo will change its name to “Altaba Inc.,” which will comprise ownership stakes in Alibaba Group and Yahoo Japan.
The official approval by Yahoo’s investors on Thursday to sell the internet businesses to Verizon comes after reports that the telco will slash upwards of 2,100 jobs, or 15% of the combined workforce of AOL and Yahoo, following the transaction’s closing.
Also Thursday, Yahoo announced the extension of its modified “Dutch auction” for up to $3 billion worth of shares of its common stock until June 16 at 11:59 p.m. ET; it had previously been scheduled to expire June 13.
Yahoo shares closed up 10.2% Thursday, at $55.71 per share, after Alibaba announced at its annual investors day that it is forecasting revenue growth of 45% 49% for 2017, well above Wall Street analysts’ previous expectations. Yahoo owns a 15% stake in Alibaba.
The integrated AOL-Yahoo business, housed under the newly created Oath division, will be organized around key content-based pillars: news, sports, finance, entertainment, and lifestyle. It will be led by current AOL CEO Tim Armstrong; Yahoo CEO Marissa Mayer will not be part of the Oath management team.
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Verizon’s deal for Yahoo originally was valued at about $4.83 billion when the companies inked the pact in July 2016, but the telco negotiated a $350 million discount after Yahoo disclosed two massive data breaches. The hacks, which occurred in 2013 and 2014, pushed back the closing the deal, which the companies had at first anticipated closing in the first quarter of 2017.