Yahoo MUST be sold right now!

Yahoo is as unbelievable asset, one of the most trafficked sites in the world with over 5.7 billion users. It has a great reputation for news, finance and sports content.

(Full disclosure: I used to write a blog for Yahoo. It got three million uniques a month. )

Yet CEO Marissa Mayer has never found a way to make money and her governance of the company has been poor.

Let’s look at the numbers:

In November 2015, Yahoo’s market capitalization was $31.1 billion.

If you subtract Yahoo’s stake in Alibaba – which Yahoo acquired in 2005 before Mayer’s tenure began –  ($28.8 billion) and their stake in Yahoo Japan ($7.9 billion) the core service that Ms Mayer is responsible for has an enterprise value of -$5.6 billion.

That’s right. According to the market, the company she presides over is worth less than zero.

Yahoo must be sold and perhaps it’s time for Ms Mayer to be let go.

But Andy, you may say, that’s a bit harsh isn’t it?

Well, her severance package is around $100m. Not bad for running a company into a market cap of -£5.6 billion.

I’m interested in a FREE content audit

 

Posted in: Infographic of the day, Opinion