Her future, however, could also be discussed at the board meetings, although tech news site Re/code says Mayer continues to enjoy board support, adding that rumours of Yahoo selling off its entire core business are greatly exaggerated.
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However, she is now planning to completely sell YHOO’s iconic Internet services, according to Wall Street Journal citing sources familiar with the matter.
Today, the Wall Street Journal (WSJ) stated Alibaba Group Holding Ltd. (NYSE:BABA) is unlikely to buy Yahoo’s main business.
Its 15% stake in Alibaba is now worth about $32 billion, and its 35% stake in Yahoo Japan is now worth about $8.5 billion. In an interview on Tuesday after news of the potential board talks was published, Yahoo senior vice president for communications products Jeff Bonforte said employees were continuing to work on new products and features as the larger discussions about the company’s fate continued.
Yahoo’s search business: Yahoo handed off much of its search technology to Microsoft when the two struck a partnership in 2010.
Yahoo has struggled for many years to re-energize its business model.
“And so are rumors that the board of the Silicon Valley Internet giant is poised to sell off the entire core business”.
The stock for the company has had a horrendous run, losing roughly 33% of its value year-to-date, but the stock posted a 7% gain in after-hours trading yesterday on the back of this news. If the company does decide to go ahead with this decision, it could well be one of the biggest announcements of the year, which would attract major firms from various sectors for the buyout process.
Yahoo’s plan to spin its stake in Alibaba was stopped when the United States Internal Revenue Service denied the company’s request to allow the transaction to pass as a tax-free deal.
One said the report of the Yahoo sale was overblown, noting that the firm had looked at Yahoo earlier, but that it wasn’t for sale and that the company needs to fix a lot of things before it could begin a sales process.
CEO Marissa Mayer had planned to complete the spinoff by January and promised to update investors on her strategy for the rest of the ailing web portal.
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Reasons for the pressure to sell include a potential tax bill of $12bn from the spinoff of Alibaba, with Yahoo’s stake in Alibaba estimated to be worth around $32bn. In Q3 2015, Yahoo reported seven percent year-over-year growth in revenue to bring the total to $1.2 billion (£0.8 billion) but posted an $86 million (£57.5 million) operating loss.
