Yahoo Chief Executive Marissa Mayer to consider a potential sale of her core internet business

 

Marrisa Mayer

The Yahoo board is planning a series of meetings from Wednesday to Friday to consider a potential sale of the company’s iconic Internet businesses and how to make the most of its valuable stake in Chinese e-commerce giant Alibaba Group Holding Ltd.

During those meetings, the company will weigh the decision to sell its core business or to continue with its plan to spin off its stake in the Chinese e-commerce powerhouse Alibaba, worth more than $30 billion. Or it could do both.

The meetings come amid an extensive debate about the future of the company and growing concerns around high-profile Yahoo Chief Executive Marissa Mayer and her lack of progress turning around Yahoo.

Yahoo Chief Executive Marissa Mayer, a former Google executive, who was hired in 2012 to turn around the business, has faced mounting pressure in recent months. She has changed the company for the mobile era as more users migrate to smartphones and tablets from PCs and also refreshed each one of the company’s mobile properties, including Yahoo Mail, Weather, Finance and Sports. The company reported a weak third-quarter earnings in October, missing analyst expectations with $1.23 billion in revenue and earnings of 15 cents per share.

Under Mayer’s tenure, the company struggled to grow its advertising business to compete with market leaders Google and Facebook. Once being the most powerful sites on the Web, Yahoo has been beaten in search and email by Google and overtaken in media by Netflix and Amazon. Also, Facebook and Snapchat have gobbled up users that Yahoo covets for its messaging apps.

Even then Yahoo has managed to stay one of the most visited Web brands in the US. According to ComScore, more than 210 million people visited Yahoo’s properties in October. Only Facebook and Google had more visitors.

Yahoo Chief Executive Marissa Mayer had planned to finish the spinoff by January and agreed to update investors on her strategy for the rest of the struggling Web portal. She is facing renewed pressure from activist investor Starboard Value, which last month wrote a letter to the company urging Yahoo to keep its stake in Alibaba as well as Yahoo Japan and instead sell its main search and display advertising businesses.

According to reports, the potential buyers for Yahoo’s Internet business could be private equity firms.

Additionally, Yahoo has also been looking to trim its product line. Earlier in October, Mayer promised to bring more focus to the company to fend off irrelevancy. Yahoo would also disinvest in products that weren’t strong performers, according to CFO Ken Goldman.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

UK watchdog whacks Amazon with probe for unfair data collection practices

UK watchdog whacks Amazon with probe for unfair data collection practices

The Competition and Markets Authority will focus on whether Amazon, Inc. favors merchants that use its delivery services.
2 days ago
Altice buys 12 percent stake in BT worth £2 billion

Altice buys 12 percent stake in BT worth £2 billion

Altice said it did not intend to make a bid for the British Telecoms company, though the takeover code also does not allow it to make an unsolicited buyout offer for six months wit
2 days ago
G7 countries agree on broad principles of minimum corporate tax deal

G7 countries agree on broad principles of minimum corporate tax deal

The world’s richest nations (G7) reached a landmark accord setting a global minimum corporate tax rate for multinationals. Would it be effective in tackling tax evasion and avoid
2 days ago
BC Partner goes the Continuation Fund way to strike a $7bn deal

BC Partner goes the Continuation Fund way to strike a $7bn deal

BC Partners, a UK private equity firm, has floated a “continuation fund” deal, one of Europe’s largest such deals, by transferring its 47 per cent stake in the academic publi
2 days ago
FDA approves Biogen’s $56,000 drug for Alzheimer’s

FDA approves Biogen’s $56,000 drug for Alzheimer’s

The Food and Drug Administration of the US approved on Monday Biogen Inc’s Aducanumab to treat Alzheimer’s disease amidst the controversy of its efficacy. Biogen has pr
4 days ago
UK watchdog’s plans for big banks to draw fair compete rules draws criticism

UK watchdog’s plans for big banks to draw fair compete rules draws criticism

Under UK Finance’s proposals, nine banks under investigation by the CMA would be obliged to fund a “future entity” for three years.
4 days ago