Yahoo! Inc. is altering the way a change of ownership would affect employee severance plans, another signal the Web portal may be preparing to divest all or part of its operations as it awaits first-round bids on April 18.
The company modified the definition of a change of control as it relates to employee severance plans. Now a change in control would be triggered by a sale of “all or substantially all of the company’s operating business,” Yahoo said in a regulatory filing. Under the old plans, the severance kicked in with a change affecting ownership of the entire company -- something that could be more difficult with so much of Yahoo’s value tied to its multibillion-dollar stakes in Asian companies.
Yahoo -- grappling with rising competition and investor scrutiny -- has set a deadline for Monday for the first round of bids for its Web operations, according to a person familiar with the matter. The company said in February it would consider strategic options, and has drawn interest from potential buyers including Verizon Communications Inc.
The amendments to the severance plans were made earlier this month, according to the filing.
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