Yahoo! Inc. (NASDAQ:YHOO)‘s board chairman, Maynard Webb, admitting they are exploring additional strategic alternatives all but arouses concerns about CEO, Marisa Mayer, tenure. Up until now, the charismatic CEO has stood her ground as calls for a spin off some of the firm’s units continues to soar. As it appears, she might be losing the fight, her own board members having budged to growing investor pressure.
Mayer’s Firm Stance
Mayer’s efforts to reinvigorate Yahoo! Inc. (NASDAQ:YHOO)’s prospects were doomed right from the start. She took over a company disgruntled on all fronts and everything she has tried ever since, has all but amounted to little or no success. However, it seems the Street underestimated her, right from the start. Amidst growing pressure from investors, she has remained firm sticking to her playbook.
Webb admitting they are exploring strategic alternatives adds another puzzle that should continue to evoke mixed reactions. It might be a vague statement as any public company is required by law to consider any effort that has the potential to generate shareholder value. However, it affirms the board’s willingness to make tough calls should need arise.
It is admirable that Mayer has opted to stick around and continue to fight back even as mounting pressure threatens to end her reigns. Every other Yahoo! Inc. (NASDAQ:YHOO) CEO over the past 15 years has seen his tenure end in failure. That is partly because the company has continued to operate without a clear sense of direction or focus.
Mayer has opted to stick around even as odds continue to work against her. It promises to be a tough year as investors more so activists are expected to continue advocating for a spinoff of the internet business as well as Alibaba Group Holding Ltd(NYSE:BABA) stakes. Failure of Yahoo to spin off key business should remain a key talking point throughout the year.
Plans to let go about 15% of the current workforce will leave Yahoo! Inc. (NASDAQ:YHOO) with 42%, fewer staff than it had in 2012. Such cuts are poised to make the embattled search giant an attractive takeout prospect for potential suitors.
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