Yahoo Searching for Prospective Buyer for its Revolutionary Core Business of Internet
By Staff Writer
It is believed that the Yahoo is inept to turn its opulence around. To deal with the scenario, Yahoo board is trying to make out whether they would find a prospective buyer for its internet business, turn down their investment in Alibaba or both. The decision will be taken later on this week followed by the series of board meetings.
According to the TechTimes report, possibly as a sign of the imminent changes, a Yahoo executive recently cancelled a scheduled appearance at an investment conference held by Credit Suisse. This news was expected, though, as Marissa Mayer, CEO of Yahoo is unable to make any progress in Yahoo's future. Although, the board has given her enough time to turn the fortune of the company around, she failed to achieve that.
Yahoo owns $30 billion shares in Alibaba and they are considering whether to sell or spin it off. People who are involved in the procedure informed that the meeting will start on Wednesday.
The back to back board meetings will be continued till Friday. A number of equity firms are already showing interest to buy the core web properties of Yahoo.
As per the CNN Money news, the Internet portal's bread-and-butter advertising business has recently been surpassed by Google and Facebook, and the gap between them is only widening. CEO Marissa Mayer literally struggled to reverse the long decline phase of Yahoo sales. In the result of a failure, Yahoo shares have dropped down 35% this year.
The company has gone for several makeover attempts in last decade. They have tried highlighting its apps and services, put the focus on media assets as well as chose to out build its once leading search engine business.
However, all attempts have gone in vain. In short, Yahoo is failing to take advantage of their once huge audience base and catching their attention for growing ad sales.
Interestingly, on searching prospective buyers for Yahoo's core business, Alexa mentioned that for none other than Alibaba's Jack Ma, who has been pushing into the media business in mainland China and beyond, a Yahoo purchase would allow the company to leapfrog every global news provider except Reddit and CNN, as per the QZ report.
Moreover, Yahoo who holds 15% stake of Alibaba, faces a hard time. The plan for spinning of the holding is not working presently and being delayed for tax concerns.
If Yahoo decides to sell off the shares, they have to pay a massive amount of taxes. Starboard, activist investor group has suggested Yahoo not to sell its Alibaba stakes and instead advised them to find out buyers for its core Internet business.