Let’s admit it, Yahoo is in crisis and Marissa Mayer doesn’t know what to do about it
When Marissa Mayer took over as CEO in 2012. she was tasked with turning around Yahoo. Under her leadership, Yahoo has debuted new products, snapped up high-profile startups, and updated its logo. But despite all the buzz, some investors feel those changes added no value to the company, while the stock slid 34% in 2015. Now that investor’s have baulked at selling off Yahoo’s stake in Alibaba (The taxes on the sell off would be too high), Mayer is casting around for a new plan. These are her current options.
PLAN A: reverse spin-off
This involves Yahoo holding onto its Alibaba shares while spinning off everything else, namely its core business and stake in Yahoo Japan.
PLAN B: Reorganise
In December Yahoo tapped consultancy McKinsey to determine which units to invest in, close, and sell. They were banking on a subset of fast-growing businesses—mobile, video, native, and social—as part of her turnaround, but the company ultimately couldn’t figure out a way to make money off them.
PLAN C: Cut back
Recent reports suggest Yahoo is planning to lay off 10% of its staff and is shopping for a buyer for a 48.6-acre site in Santa Clara.
PLAN D: Give up and sell it
Yahoo chairman Maynard Webb recently noted the board remains dedicated to a turnaround and “has made no determination that the company is for sale.”
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