The search engine corporation
Yahoo! Inc. has been in the market for over two decades now making it one of the first internet companies; which makes it difficult to see it struggle in the market. After witnessing the situation that it is currently in, it becomes evident that technology companies need to keep pace with the changing dynamics of the tech world otherwise it would simply be left behind.
Marissa Mayer was appointed the chief executive officer of the search engine organization in 2012; and ever since then the company has been in hot water. Time and time again, she has tried to persuade the board that better days are right around the corner but has been unsuccessful in doing so.
The challenges that were being faced by the company got to a point where the best option seemed putting Yahoo on sale. The CEO made all the efforts to beat about the bush with the shareholders and direct them towards other alternatives but found herself at a hopeless dead end. It is quite surprising as to how a number of large firms are interested in the acquisition of the company despite of the struggles that are being faced by it. It clearly suggests that there is still enough for the acquirers to cash in on.
Presently, the list of companies that are interested in buying the search engine organization are mostly private equity firms. Additionally many believe that it would be a sensible decision on the management’s part to take the company private given the current dilemma.
The shareholders have been on the edge for quite some time now due to the misfortune of the technology company and would actually be open to the idea of privatization. A suitable example will be of Dell, as the CEO Michael Dell recently took the company private in partnership with Silver Lake Partners. It was worth $25 billion however it is debatable whether this was successful move by the organization.
Presently, Yahoo is in the public’s eyes, in case it decides to go private there is a greater chance for it to rectify its problems without making the headlines at the time. However it is still arguable without it would be a smart move by the company or not. Furthermore, if it decides to go forward with that plan, it will get enough room to work on new products with its head low in the game and away from the public eye – currently it is difficult for Yahoo to do so as the investors are always looking for short term gains which doesn’t give enough room to the company to improvise.
The management would need to do some serious convincing with the shareholders but since the move seems like the light at the end of the tunnel, they might just be on board with the idea.