Altaba

Altaba Inc. was a U.S. investment management company created from the corporate remains of the original Yahoo! Inc. after Verizon Communications acquired Yahoo's principal internet operations in 2017. It was not the continuation of Yahoo's consumer-facing portal, search, mail, news, finance, or other online services. Instead, it became a non-diversified, closed-end management investment company whose purpose was to manage, monetize, and ultimately distribute the assets that Verizon had not acquired. The company originated in the early history of Yahoo. Jerry Yang and David Filo created an organized directory of websites in 1994, initially called Jerry and David's Guide to the World Wide Web. The service was renamed Yahoo! in April 1994, and the Yahoo.com domain was registered in January 1995. Yahoo expanded rapidly into a major web portal and technology company, building a large portfolio of consumer internet products and making numerous acquisitions. Its value surged during the dot-com era, but the company later faced strategic, competitive, and operational difficulties. Important events in the pre-Altaba period included the rejection of Microsoft's acquisition proposal in 2008, repeated chief executive changes, workforce reductions, and the disclosure of major data breaches affecting hundreds of millions of accounts. In July 2016, Yahoo agreed to sell its core internet business to Verizon. Verizon completed the acquisition on June 13, 2017, transferring the operating assets into Yahoo! Holdings, a Verizon subsidiary within Oath, the division later associated with the modern Yahoo business. The former Yahoo! Inc. retained cash, partnership investments, a bond portfolio, minority equity positions, and intellectual-property assets that were outside the transaction. On June 16, 2017, the remaining company changed its name to Altaba Inc. and reorganized around investment management and asset disposition. Its shares traded on Nasdaq under the symbol AABA. Altaba's most significant holdings included a substantial interest in Alibaba Group and a stake in Yahoo Japan Corporation. It also held or had held positions in companies and assets including Hortonworks, Gomaji, Envestnet, Rimage Corporation, SeatGeek, Protagenic Therapeutics, Eastman Kodak Company, Paperless Post, and Snap. Excalibur IP, an Altaba-owned patent business, represented another important residual asset. The company used external investment advisers including BlackRock Advisors and Morgan Stanley Smith Barney. The post-Yahoo company progressively sold its investments rather than developing new consumer products. In late 2018 it announced the sale of its Yahoo Japan interest to SoftBank Group and authorized a large share repurchase program. In April 2019, Altaba announced plans to sell its Alibaba stake and wind down. Its Nasdaq trading ended on October 2, 2019, and it filed a Delaware certificate of dissolution on October 4 under a plan of complete liquidation and dissolution. Some funds were retained for potential tax obligations connected with the Alibaba transaction. In 2020, the Excalibur IP patent portfolio was sold to RPX Corporation. Altaba therefore ended as a liquidation and investment vehicle rather than as an ongoing operating brand.

Altaba was the legal and investment-management successor to the portion of Yahoo! Inc. that remained after the sale of Yahoo's operating internet business to Verizon Communications. Understanding Altaba requires separating the company from the modern Yahoo consumer brand: Verizon acquired the operating assets and placed them in Yahoo! Holdings, while the former public company retained assets that were not included in the transaction. Yahoo began in January 1994, when electrical-engineering graduate students Jerry Yang and David Filo created a hierarchical directory of websites. Originally called Jerry and David's Guide to the World Wide Web, it was renamed Yahoo! in April 1994. The Yahoo.com domain was registered in January 1995. The service grew from a directory into a broad web portal offering search, email, news, finance, advertising, and other online services. Yahoo expanded through acquisitions and became one of the most recognizable internet companies of the 1990s and 2000s. The company experienced both extraordinary growth and substantial strategic pressure. Its market valuation rose sharply during the dot-com bubble, followed by a severe decline when the bubble burst. Yahoo rejected Microsoft's acquisition proposal in 2008. During the following years it changed chief executives several times, reduced its workforce, and attempted to rebuild its consumer internet and mobile businesses. Under Marissa Mayer, Yahoo continued to evaluate acquisitions and partnerships, including interest in Hulu, while dealing with competitive pressure from Google, Facebook, and other technology companies. Yahoo's later years were also marked by major cybersecurity incidents. In September 2016, the company disclosed a breach involving information connected with at least 500 million accounts. In December 2016, it disclosed a separate breach affecting more than one billion accounts and dating to 2013. The incidents became important to the Verizon transaction and generated litigation and regulatory scrutiny. In July 2016, Yahoo agreed to sell its core internet business to Verizon. The transaction closed on June 13, 2017. Verizon acquired the operating services and related assets, while the old Yahoo company retained cash, partnership interests, a bond portfolio, certain patents, and other investments. On June 16, 2017, the remaining company changed its name to Altaba Inc. and adopted the structure of a non-diversified, closed-end management investment company. Its shares traded on Nasdaq under AABA. Altaba's main strategic task was not product development but portfolio management and liquidation. Its most important assets included a large Alibaba Group holding and an interest in Yahoo Japan Corporation. It also maintained or had maintained investments in companies such as Hortonworks, Gomaji, Envestnet, Rimage Corporation, SeatGeek, Protagenic Therapeutics, Eastman Kodak Company, Paperless Post, and Snap. Excalibur IP, an Altaba-owned patent company, controlled a significant intellectual-property portfolio. External investment advisers included BlackRock Advisors and Morgan Stanley Smith Barney. Altaba announced the sale of its Yahoo Japan interest to SoftBank Group in September 2018. In April 2019, it announced the planned sale of its Alibaba interest and a complete wind-down. Nasdaq trading ended on October 2, 2019, and the company filed a Delaware certificate of dissolution on October 4. Residual funds were retained for potential tax liabilities associated with the Alibaba sale. The Excalibur IP patent portfolio was sold to RPX Corporation in 2020. Altaba consequently ended as a closed-end investment and liquidation vehicle, with no continuing consumer internet operations.

1. 2020Excalibur IP portfolio is sold

   The remaining patent portfolio associated with Excalibur IP is sold to RPX Corporation.

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2. 2019Liquidation and dissolution begin

   Altaba announces the planned sale of its Alibaba interest, stops trading on Nasdaq in October, and files a certificate of dissolution in Delaware.

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3. 2018Yahoo Japan investment is sold

   Altaba announces the sale of its Yahoo Japan stake to SoftBank Group.

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4. 2017Verizon completes the Yahoo transaction

   Verizon completes the acquisition on June 13, and the remaining Yahoo company changes its name to Altaba on June 16.

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5. 2016Core internet business sale is agreed

   Yahoo agrees to sell its principal internet business to Verizon.

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6. 1995Yahoo.com domain is registered

   The Yahoo.com domain is registered, supporting the company's transition from a student project into an internet business.

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7. 1994Yahoo's predecessor website is created

   Jerry Yang and David Filo create a hierarchical directory of websites that later becomes Yahoo!.

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A post-acquisition asset-management and liquidation vehicle, rather than a consumer internet or technology-services operator.

• Investment portfolioAsset management2017

  Altaba's principal offering was the management of retained corporate investments after the Verizon transaction. The portfolio included the Alibaba Group and Yahoo Japan interests, along with public and private positions in other companies. Altaba's role was to preserve value, sell or distribute holdings, and complete the corporate liquidation rather than market investment products to retail customers.

• Excalibur IPIntellectual-property asset

  Excalibur IP was an Altaba-owned patent company holding a significant intellectual-property portfolio retained from the former Yahoo organization. It was treated as a residual corporate asset during the wind-down. The portfolio was ultimately sold to RPX Corporation in 2020.

• 2019Sell Alibaba interest and wind downStrategy

  After divesting major portfolio holdings, Altaba's remaining purpose was to monetize its principal assets and distribute the proceeds.

  What changed. Altaba announced the planned sale of its Alibaba Group stake and the closure of the company through complete liquidation and dissolution.

  Aftermath. Trading ended in October 2019, followed by formal dissolution proceedings and later disposal of the remaining patent portfolio.

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• 2018Sell the Yahoo Japan interestM&A

  Altaba was reducing its portfolio and no longer operated Yahoo-branded consumer services.

  What changed. Altaba announced the sale of its stake in Yahoo Japan Corporation to SoftBank Group.

  Aftermath. The transaction removed one of Altaba's principal Yahoo-related investments and advanced the liquidation strategy.

  Announced transaction value. US$4.3 billion (September 17, 2018 announcement)

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• 2017Reorganize the remaining Yahoo company as AltabaStrategy

  Verizon acquired Yahoo's principal operating internet assets, leaving the former Yahoo company with investments, cash, intellectual property, and other residual assets.

  What changed. The company changed its name to Altaba Inc. and adopted a non-diversified, closed-end management investment-company structure.

  Aftermath. Altaba stopped operating consumer internet services and concentrated on managing and disposing of its retained assets.

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• 2016Yahoo data breaches disclosedControversy

  Yahoo disclosed two major breaches: one involving at least 500 million accounts and another, dating to 2013, affecting more than one billion accounts. The incidents became part of the legal and transaction context surrounding the Verizon acquisition and later generated lawsuits and settlements.

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• 2020Excalibur IP patent portfolio is sold

  Altaba sold the Excalibur IP patent portfolio to RPX Corporation as part of the continuing liquidation process.

  M&A
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• 2019Altaba announces Alibaba stake sale and wind-down

  Altaba announced plans to sell its Alibaba Group interest and close down through a complete liquidation and dissolution process.

  M&ABankruptcy
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• 2019Altaba ceases Nasdaq trading and files for dissolution

  Trading under AABA ended on October 2, followed by the filing of a Delaware certificate of dissolution on October 4.

  Other
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• 2018Altaba announces sale of Yahoo Japan stake

  Altaba announced the sale of its interest in Yahoo Japan Corporation to SoftBank Group, ending its principal Yahoo-branded operating investment.

  M&A
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• 2017Verizon completes acquisition of Yahoo's internet business

  Verizon completed the transaction on June 13, 2017, and placed the acquired operations into Yahoo! Holdings within Oath.

  M&A
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• 2017Yahoo! Inc. changes its name to Altaba Inc.

  The remaining company adopted the Altaba name on June 16, 2017, reorganizing as a non-diversified, closed-end management investment company.

  Leadership changeOther
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• 2016Yahoo agrees to sell its core internet business to Verizon

  Yahoo agreed to transfer its principal operating internet assets to Verizon, leaving the corporate entity with investments, cash, intellectual property, and other residual assets.

  M&A
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1. Altaba