Strife at Yahoo: Board Plays Coy, But Mayer Forges On

By

Yahoo has never really recovered its initial dot-com glory. Now, the company is faltering and ready to be stripped for parts. Yet somehow, against all odds, counsel, and expectation, Yahoo’s Marissa Mayer wants to press on—but Yahoo’s board may undermine her with a bid to sell the Silicon Valley-based company.

After Yahoo’s lackluster Q4 report came out earlier this week, the company was widely expected to put itself on the auction block. According to rumors and speculation, Microsoft, Verizon, and private equity firms could all be looking at a potential buy.

Now, everyone talking about Yahoo’s sale is focused on one source: Yahoo’s chairman of the board Maynard Webb’s recent statement. Webb, in his Q4 statement, said, “The Board…believes that exploring additional strategic alternatives, in parallel to the execution of the management plan, is in the best interest of our shareholders…we will engage on qualified strategic proposals.”

Analysts are suggesting that Webb’s “strategic proposals” are chairman-speak for “we’re holding an open house.” It wouldn’t be the first time the board has wanted to sell the company. Before Mayer took the helm, the option was heavily considered by investors and the board.

But Mayer is making incredibly bold moves in an effort to prove Yahoo’s current worth. She sees the future differently. She imagines a stripped down Yahoo. Spin off the baggage, lighten the ship, she says, and Yahoo will sail on.

That’s why she’s proposed such an aggressive strategy for the upcoming year. Mayer will lay off 15 percent of Yahoo’s workforce, close five international offices, and tighten operations. She’ll also spin off some of Yahoo’s services that have failed to catch the cultural eye, including Yahoo Games and Yahoo Smart TV. Yahoo’s digital magazines will also take a hit as several titles are consolidated.

Realistically, Yahoo will probably be forced to sell. It’s hard to imagine the company pulling itself out of the quicksand. But Mayer is a successful and extremely competent CEO; her vision may be possible, even if the board is ultimately unwilling to see it through. 




Edited by Maurice Nagle
Get stories like this delivered straight to your inbox. [Free eNews Subscription]
SHARE THIS ARTICLE
Related Articles

Why Block Websites? Understanding the Reasons

By: Contributing Writer    5/6/2024

The internet is such an expansive network where every click can lead to information, entertainment, or opportunities for productivity. However, this a…

Read More

ChatGPT Isn't Really AI: Here's Why

By: Contributing Writer    4/17/2024

ChatGPT is the biggest talking point in the world of AI, but is it actually artificial intelligence? Click here to find out the truth behind ChatGPT.

Read More

Revolutionizing Home Energy Management: The Partnership of Hub Controls and Four Square/TRE

By: Reece Loftus    4/16/2024

Through a recently announced partnership with manufacturer Four Square/TRE, Hub Controls is set to redefine the landscape of home energy management in…

Read More

4 Benefits of Time Tracking Software for Small Businesses

By: Contributing Writer    4/16/2024

Time tracking is invaluable for every business's success. It ensures teams and time are well managed. While you can do manual time tracking, it's time…

Read More

How the Terraform Registry Helps DevOps Teams Increase Efficiency

By: Contributing Writer    4/16/2024

A key component to HashiCorp's Terraform infrastructure-as-code (IaC) ecosystem, the Terraform Registry made it to the news in late 2023 when changes …

Read More