Yahoo stockholders, in a special meeting held yesterday, have approved the sale of the company to Verizon. The news came from Yahoo’s Investor Relations site and was a short but important announcement.
Yahoo stockholders approved the previously announced proposed sale to Verizon Communications Inc. (“Verizon”) of the Company’s operating business (the “Sale Transaction”). In addition, Yahoo stockholders voted to approve the advisory vote on the compensation payable to the Company’s named executive officers in connection with the completion of the Sale Transaction.
The announcement goes on to say that the expected close date of the sale is June 13, 2017. The company will then be named Altaba, inc.. The total cost of the transaction is $4.48 billion and will position Verizon as a significant player in the digital marketing sector, their primary purpose for making the acquisition.
Executives from Yahoo will be compensated in some way in connection with the the transaction. This is often referred to as a “golden parachute” with it estimated that CEO Marissa Mayer receiving some $23 million in compensation. At the same time, Verizon is expected to eliminate some 2100 jobs across the AOL and Yahoo brands as they assimilate the company while also leveraging the data collection tools of the brands for more targeted advertising going forward.
With all of the regulatory hurdles crossed and the shareholder’s approving the deal, there is very little in the way now for the closing of the transaction to happen next week.