The search engine giant has not come up with a conclusion as of yet amid immense pressure from the activist shareholders
It is believed that Yahoo Inc. is finally coming up to a conclusion regarding its future in the market. As sources suggest, it can be said that the firm is considering to sell its core internet business in the foreseeable future. It might end up selling its Alibaba stakes as well which accounts for the majority of its market value currently. The Star reported that the search engine giant will consider an ‘outright sale’ of its business which could result in a significant shift as it faces immense pressure from the activist investor.
In previous months, the board of directors along with executives of Yahoo mentioned that they are planning to sell off its core internet business, which top analysts along with Starboard Value LP also suggest the company to do. This was another of the many strategies of the internet firm in the past year to overcome its declining business and revenues. Sources familiar to the matter reported that this idea ‘might be’ abandoned in favor of a sale now.
The activist investor of Yahoo, Starboard Value LP, wrote a letter to the board of directors showing his concerns regarding the future. The CEO of the investment firm clearly mentioned that he is not confident that Marissa Mayers and her management team has it what it take to turn around a dying business. He wrote that it would be better if Yahoo part ways with the current CEO as soon as possible. People familiar to the matter said that Yahoo might require a new plan to fight off an expected proxy by its activist investor. The people asked to remain anonymous due to the confidentiality of the matter as there has been no final decision made as of yet.
The internet giant has still not concluded whether it will be selling off its core internet business or not and what will it do with its Asian assets. So far, the company has not yet contacted any banks to carry on with the sale procedure nor offered itself to any other companies in the market.
According to the chairman of the firm, Maynard Webb, stated in December in a conference call “There is no determination by the board to sell the company or any part of it. We believe that the business remains very undervalued, and we are focused on realising and unlocking that value, both with separating our assets the way we are talking about, and also working on transforming our operational businesses.”