Shares of Yahoo (YHOO) are in focus in early trading after the company unveiled its executive team that will remain after its core assets are sold to Verizon (VZ).
EXECUTIVE TEAM: In a regulatory filing this morning, Yahoo said that board member Thomas McInerney will serve as the company’s chief executive officer when the Verizon deal closes, while Alexi Wellman will take on the chief financial officer role. Current Yahoo CEO Marissa Mayer will remain in her role until the deal’s closing, upon which the company will be change its name to “Altaba”; at the same time, Mayer will step down from the company’s board of directors. Current CFO Kenneth Goldman will also continue in his role prior to the closing. McInerney is the former CFO of IAC/InterActive Corp (IAC) and joined Yahoo’s board in April 2012, the same year Mayer was named CEO of Yahoo. Additionally, Yahoo appointed Arthur Chong as general counsel and secretary, a position he will keep at Altaba. Upon the closing of the Verizon deal, DeAnn Fairfield Work will serve as Chief Compliance Officer, Yahoo said in the filing.
PRELIMINARY PROXY STATEMENT: The leadership moves come as Yahoo also released a preliminary proxy statement and urged its shareholders to vote for the revised $4.48B deal to sell the core internet business to Verizon. Following completion of the deal, Altaba’s remaining assets will include Yahoo’s stake in Alibaba (BABA) and Yahoo Japan. Yahoo said that a recommendation by an independent committee of board of directors has determined that the sale transaction agreements and the sale transaction are “expedient and for the best interests of Yahoo and its stockholders.”
BACKGROUND: In January, Yahoo said Mayer would be among six directors who will step down from the board following the completion of the Verizon deal. At the time, Eric Brandt was named chairman, while Maynard Webb moved from chairman to chairman emeritus. Following the closing of the deal, Yahoo co-founder David Filo, Eddy Hartenstein, Richard Hill and Jane Shaw will step down from the board, reducing the of the board size to five directors. Yahoo said at the time that the departures are “not due to any disagreement with the company on any matter relating to the Company’s operations, policies or practices.”
