Board to Determine Future of Yahoo!
CBJ — The board of directors at Yahoo! is weighing a sale of its core Internet business when it meets this week. There has been lots of rumbling as to whether or not CEO Marissa Mayer (pictured) will be in the position much longer following a number of expected business deals did not pan out for one reason or another.
The Wall Street Journal first reported the possible sale of the Internet business late on Tuesday.
Yahoo’s core business, which includes Yahoo Mail and its news and sports sites, could attract private equity firms, media and telecom companies or firms like Softbank Group.
The news comes as the 40-year-old Mayer faces growing pressure over the company’s lagging performance. Mayer came to Yahoo after a long stint at Google.
Hopes of a large comeback were stalled as Yahoo’s plan to push mobile, video, native and social media ads — a strategy Mayer introduced in 2014 under the acronym Mavens – failed to increase revenues as desktop search ads continued to decline.
A $1.1 billion deal in 2013 to acquire social blogging site Tumblr also hit snags, with investors arguing that Mayer overpaid for an unprofitable product. The deal lifted Yahoo’s user base to about 1 billion but did not bring in much in the way of additional advertisers.
Yahoo’s plans for the spinoff of its stake in Alibaba hit a roadblock at the end of the summer when the U.S. Internal Revenue Service denied a request to grant the transaction as a tax-free deal.