Could This Be The End Of Yahoo! Inc?

Yahoo stock, Yahoo future, Yahoo news, Yahoo Updates,

The CEO of the search engine company has made way too many bad decisions now; we believe its time that she just … lets it go.

Yahoo! Inc. has been on the news on and off throughout the year; let us mention, not for all the right reasons. Marissa Mayor might have hoped for the search engine giant to be making the headlines with some good news – but it is quite evident that the internet service has been on the news throughout because of her as she is the Chief Executive Officer of the company. She has made numerous efforts to rid herself of the bad publicity that has been caused but shareholders are just not happy with her or Yahoo.

Marissa Mayor has not been with the company for that long but in that short span of time, she has managed to make more enemies than friends. Shareholders and analysts initially believed that she had a good hold on the management of the organization and hence will be able to bring good fortune towards it – but instead she acquired Tumblr. In an effort to increase growth, one of the biggest decisions she made in her tenure was the acquisition of Tumblr which was worth $1.1 billion – the purchase was made in 2013. She believed that they will be able to boost growth by making the service available on cell phones which would attract the younger crowd.

This acquisition by Mayor proved to be one of the worst decisions made by a CEO as it failed to meet its revenue target and made the business lose as much as $230 million. At this point, she has been working really hard to get the photo sharing platform on track but all her efforts have gone in vain as they are being criticized by the representatives of the video/photo sharing platform. Additionally, she combined the sales team of Yahoo with that of Tumblr which the representatives believe was a bad decision on the CEO’s part and now these efforts are just to make amends.

The CEO of Yahoo had initially stated that she will refrain from merging the two sales teams but she went forth with the plan despite the fact that it was widely criticized by everyone. Furthermore, because of this one step taken by Mayor, she lost her credibility in the market and in front of the shareholders mainly because she went against her promise. The board believed that she was over paying for the service anyone – so this was just cherry on top.

However this was not the only bad decision made during the tenure, according to recent reports the search engine company has also seeking help from Morgan Stanley to look for potential buyers in the market for its core business. This has been an ongoing debate, as many analysts believe that it’s the right time for the sale of the search website because at this point, it can still put a strong price target on the company.

Additionally, Yahoo stock has also fallen significantly in 2015 by as much as 36% and since the start of 2016 the stock has dropped by 15% – at this point, the shareholders are quite concerned about the future of the company and are evidently losing their patience.


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