The stock surged 6% on Wall Street overnight as investors cheered plans to separate Alibaba without being hit with a mammoth tax charge. “This would appeal to global players, media companies, telecom participants and even some cable firms”.
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A board meeting this week according to the Journal will explore a number of strategic options.
Yet, for years now, Yahoo has desperately sought a reason for existing.
The Wall Street Journal believes private-equity firms are most likely to be the proud owners of Yahoo! Let’s address some of the pressing questions pertaining to the future of Yahoo! Inc.
She’s also lost several executives in recent months, including Jacqueline Reses, Yahoo’s chief development officer, who had shifted her focus this year to the Alibaba share sale.
The argument there is that as long as Yahoo’s stock price is tied to Alibaba’s performance, Yahoo can’t compete for talent the way other tech giants can.
A separate Alibaba stake would be expected to be more highly valued by the market, but investors want to avoid a massive tax bill in the process. The rally was largely fueled by its stakes in Alibaba Group Holding Ltd and Yahoo Japan Corp. Selling off or spinning off those assets could put plenty of cash in Yahoo’s pocket that could allow the company to make another push with its USA operations. At the time, Starboard approved the move.
“I think private equity would be interested in the Mavens businesses”, he said.
Alibaba and Softbank have also been bandied about as potential buyers. (NASDAQ:YHOO) seeks a buyer for its underperforming core Internet business. “In its current conglomerate state, it’s very hard to do anything with Yahoo”.
Yahoo previously said it would not sell, but planned to spin off its shares in Alibaba Holding Group instead.
Mayer was brought in to turn the company around in 2012 and proceeded by buying assets like blogging company Tumblr, which cost the company $1.1 billion.
The Yahoo logo is shown at the company’s headquarters in Sunnyvale, California April 16.
“Realizing value is far from assured, however”, Pivotal analyst Brian Wieser wrote in a note.
By Acquiring Yahoo’s Internet business, Verizon should be able to bolster its growing advertising business.
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Yahoo websites including the homepage, Yahoo Finance, Yahoo Mail, and Yahoo fantasy sports. Mayer’s jump from Google to Yahoo was a game changer for the latter.
