Yahoo Shareholders Approve Verizon Deal; Companies See June 13 Closing

Yahoo says the $4.48 billion sale of its media assets to Verizon should close on June 13 after shareholders today approved the transaction.

The preliminary tally from the special meeting also showed that investors endorsed, in an advisory vote, the golden parachutes for Yahoo’s top executives.

CEO Marissa Mayer’s package was valued at $23.0 million including $3.0 million in cash, nearly $20.0 million in equity, and about $25,000 in benefits, in a March proxy.

The parachute has a so-called double trigger, meaning that she gets it when there’s a change in control and she’s terminated without what the contract would define as a good cause.

The total value of her stock, options and stock units has been pegged at $186 million.

Verizon plans to combine Yahoo’s more than 25 internet brands — including assets in mail, social media platform Tumblr, news, lifestyle media, and entertainment — with AOL in a division to be named Oath.

Efforts to eliminate duplication could lead to the loss of 2,100 jobs, about 15% of the workforce, TechCrunch reports

Once Verizon takes Yahoo properties then the iconic internet company will change its name to Altaba Inc. and continue to exist as an investment company that primarily owns stock in Chinese e-retailer Alibaba.

The Alibaba shares are up 11.3% today — touching a new high — after the company said at an Investor Day event that it expects to see revenues grow as much as 49% in the fiscal year ending in 2018. Analysts anticipated about 31% growth.

Yahoo’s stock is up 8.4%, reflecting the higher value of its Alibaba holdings.


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