Yet, while many think that Mayer might lose her job in a matter of months, Yahoo company Chairman Maynard Webb said that the company’s board still has faith in their CEO. Mayer said in a tweet on Thursday.
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In September, Ms. Mayer said via her blog that she planned to take limited time away and work throughout her pregnancy, similar to the approach she took when her son was born three years ago.
The company just announced plans to spin off its core business, and some have questioned Mayer’s leadership.
“The twins part was quite a surprise because I have no family history of twins or any other predisposing factors”, she wrote at the time.
Yahoo will weigh a spinoff of its core business, which includes its advertising, search technology, Yahoo Sports and the Tumblr blogging platform.
In a bid to satisfy the Internal Revenue Service’s (IRS’s) tax-free spin-off rules that the transaction be carried out for a business objective, with the requirement that a new entity should house an “active trade or business”, Aabaco would have also controlled Yahoo Small Business, which helps United States merchants set up websites.
As it was also uncertain whether Yahoo would be able to obtain an IRS ruling on the transaction, the company has now confirmed that it is “suspending work on the Aabaco spin-off”. Yahoo stock is down 30% from the beginning of the year. Instead, it said it is looking at creating a separate company to hold the rest of its assets. He reiterated a US$40 target price for Yahoo shares. Its properties are frequented by more than 1 billion active users each month, and more than 600 million of those years are on mobile, the company says.
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The two companies would each be publicly traded, Yahoo said. “I’ve shared the news and my plans with Yahoo’s Board of Directors and my executive team, and they are incredibly supportive and happy for me”.
