Despite two high-profile data breaches that came to light just after Verizon agreed to buy Yahoo for $4.83 billion, the sale is going forward as initially announced, albeit with some fears on Yahoo's side.
Recently published SEC filings reveal how Yahoo plans to continue to operate past the Verizon acquisition, with the biggest change being the rebranding of leftover Yahoo services that Verizon had not agreed to buy.
According to SEC filings, following formal approval of the Verizon-Yahoo deal, these leftover services will continue to operate as a new company named "Altaba."
Back in July, Verizon bought Yahoo's core Internet services (email, news, finance, etc.), which it planned to integrate into its own operations.
Initially, we didn't know if some of these services will continue to operate under the old name, or Verizon had also purchased the Yahoo brand as well. With the leftover services rebranding, Verizon appears to be the owner of the Yahoo brand, which it many continue to use it past the acquisition.
The second major news hidden in the SEC filling is that Marissa Mayer will resign from her role as CEO and will not continue with the leftover Yahoo services, which are mostly made up of controlling stakes in other companies such as Alibaba.
In fact, according to sources inside Yahoo, the new Altaba names comes from combining the words "alternative" and "Alibaba."
The same SEC filing also reveals that (current) Yahoo leadership is still very afraid that Verizon might cancel the acquisition, mainly due to the two security breaches reported towards the end of 2016:
Risks that Verizon may assert, or threaten to assert, rights or claims with respect to the Stock Purchase Agreement as a result of facts relating to the security incidents disclosed on September 22, 2016 and December 14, 2016 and may seek to terminate the Stock Purchase Agreement or renegotiate the terms of the Sale Transaction on that basis;
Both data breaches, of 500 million and 1 billion user records, rank as the two biggest data breaches in history. Rumors that Verizon might reconsider the acquisition surfaced after the second data breach.