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Published: Tue, July 19, 2016
Economy | By Melissa Porter

It's Judgment Day for Marissa Mayer

It's Judgment Day for Marissa Mayer

Yahoo has not commented on any specific bidders for the core business, but much of the speculation centers around Verizon, the telecom giant which recently acquired another faded Internet star, AOL.

In total, Yahoo has now written down more than half of Tumblr's value since acquiring it for $1.1 billion in 2013 - rendering Mayer's biggest acquisition to date effectively worthless. (NASDAQ: YHOO), according to a spokesperson for DailyMail.com.

While those EPS and revenue numbers may grab headlines after earnings, here's the biggest catalyst that will move the YHOO stock price in 2016...

Yahoo surprised Wall Street on Monday by showing sales growth rather than a decline. He later said that reducing the company to 4000 to 5000 people would also be acceptable.

The company is not only losing share of the market, but is also raking in fewer ad dollars in absolute terms, according to the research firm. Over the last three months and over the last six months, the shares of Yahoo! Inc. Because of this, it emerged among its board directors the agreement of selling the company to avoid a battle between them.

And there are those who say YHOO stock doesn't ever have to return to significant growth to be a good investment.

There has been a lot of speculation about the future of Yahoo once it's sold. Bidders in the sale of Yahoo include Verizon, AT&T, Berkshire Hathaway, and Dan Gilbert of Quicken Loans. An easy way for the company to do so would be buying back the 15% stock the Sunnyvale Company has in Alibaba.

Currently, Yahoo's most valuable assets are its stakes in Alibaba, a Chinese online marketplace company, worth $31 billion, and Yahoo Japan, worth $8 billion.

It has been a tortuous performance that seems to have lasted for about as many months as it takes to gestate an elephant and will nearly certainly drop a longed-for and merciful curtain on the lacklustre and unsuccessful tenure of Marissa Mayer as Yahoo's CEO, ironically enough nearly exactly four years to the day since she was appointed to the role.

The tepid progress in turning around the business attracted pressure from activist investors who pushed Yahoo to launch an auction of its core business in February. Sources familiar with the matter stated that company will make a decision as soon as the bids are presented. Analysts had a consensus revenue estimate of $1.08 billion. Yahoo is expected to reveal its sale decision before the end of July. Clearly, the potential buyers think there's a chance to get Yahoo up to that level.

"The thing it (Google) did so well that Yahoo missed on is it stood for a clear utility and clear use", VanBoskirk said.

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