Yahoo recently announced their quarterly earnings which are fairly in line with analyst estimates, but that can hardly be called victory for the once leading innovators and tech giants of the early Silicon Valley Tech companies.
WHATS GOING ON?
When the current CEO Marissa Mayers was announced as the CEO of Yahoo many employees and shareholders cheered believing Mayers will bring the struggling company back to its glory. However now it seems that Mayers is joining the group of the ever lackluster CEOs, that have tried to revive Yahoo. Yahoo’s current Market Cap is around $27 billion but that value is greatly contributed by it’s $30b stake in Alibaba (which as a company itself is hitting some rough patches this year). Many attribute Yahoo’s failure to its over purchasing of many companies (around 20) in a short time span (13 months or so), which brought no essential value to the company as a whole.
Solution?
One commonly suggested solution, that Yahoo might try to do is to make Yahoo more focus on the useful parts of it’s companies and try to figure out a way to spin-off its Alibaba holdings ( favorably, tax wised).
My Opinion (Note I’m obviously not an expert)
I would suggest Yahoo take up an Alphabet/ Berkshire Hathaway like structure (which they might be currently trying to do), and structure their company with the profitable or could be profitable businesses.
These would be Yahoo Search, Yahoo Finance, Yahoo Sports, Yahoo Mail, Tumblr, and Flicker, and it’s Alibaba holdings. This focus on core businesses would allow the company to focus their resources and employees on what makes Yahoo, Yahoo and give the ! behind its logo an actual meaning.
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