YAHOO’S plan to sell its operating business to Verizon for $4.83 billion fired up the business world nearly a year ago. The deal is set to finally conclude in June, Yahoo told users via email on May 12.
The message informs Yahoo users of the plan, the possible date of completion, and the changes it did to the Terms of Service (TOS) reflecting the Yahoo Holdings, Inc. name. In section 28 of the TOS, Yahoo added:
“Yahoo may freely assign the TOS and all of the policies and other documents incorporated or referenced in it (including all rights, licenses, and obligations under it or them), in whole or in part and without notice.”
Users can simply access it the same way as before, Yahoo said, adding however that the changes in the TOS will give way for a swift change in business operations with Verizon “and they lead to the issue that your legal responsibilities to Yahoo! Inc. will become responsibilities to Yahoo Holdings Inc.”
The updates have already been implemented for any new user registrations while for existing accounts, it will take effect on June 8 if users do not cancel their accounts before then, Yahoo said.
Although there is no information yet that Verizon will remove Yahoo’s existing users, the technology company said consumers must be vigilant and should continually update and back-up the important files they have on their Yahoo accounts as these became vulnerable from a massive hacking incident in 2013, compromising one billion accounts.
Carlos Bazan-Canabal, Yahoo! Mexico co-founder, explained in his Quora profile: “Verizon would most likely keep the email service with little or no change at all. It’s to their advantage given the monetizable traffic it gets. It would be a failed move to terminate the service.”
“Legally, you are bound by what Yahoo! has called the UTOS (Universal Terms of Service), and so will any acquiring company. A notice should be given to you in case of service termination,” he added.
Aside from the TOS changes, users should expect that a new name would soon emerge after the said venture. With Verizon’s thought of merging Yahoo and AOL, it has decided to name the new ensemble as “Oath”, receiving both sarcastic and humorous comments from netizens.
Verizon seems positive and pleased with its brave investment, saying both acquisitions from AOL and Yahoo will help the company to top the media competition globally.
Lowell McAdam, Verizon chairman and CEO, said, “Just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”