Sources suggest that Yahoo will be selling its core business in the coming times.
The activist investor of Yahoo Inc. is very much concerned regarding the future of the firm. The company, so far, has not made any decision about what it will be doing and has come to no conclusion at all. This is where the Starboard Value LP is taking a step forward and urging the board of directors to sell its core internet, advertising, and search business and separate its Asian assets from its business. Reports are again emerging that the firm is all set to disperse its internet search unit in the coming.
According to sources, it is believed that the shares of the internet organization rose by 3 percent amid reports of the sale of its core business. Starboard Value, its activist investor, has put Yahoo under immense pressure if the conditions go worse than this. The CEO of the investment firm wrote a letter to Yahoo's board of directors which stated how the company should go about in the future. The letter also mentioned that Starboard Value LP is not in favor of Marissa Mayers leading the company. Furthermore, if this continues then Starboard would shake up the management of Yahoo.
It is a bit confusing as Starboard Value wants the search engine giant to sell off its core business. But it is also urging to spin off massive stakes in the Chinese e-commerce giant, Alibaba Group. Yahoo's stakes in Alibaba accounts for majority of its market value at this moment.
Regardless of whatever Starboard Value proposes or whatever comes up in the news, the internet firm has not yet finalized its decision. Starboard's CEO letter clearly blamed the management for failing in the market. He mentioned that the current management team is no capable to turn around things as Yahoo stocks declined by 38 percent in the past one year.
In order to overcome losses, the firm will opt for cost cutting strategies. Sources suggest that Yahoo will soon be saying good bye to 10 percent of its overall work force in the foreseeable future to make up for massive losses. Analysts say that the layoff round will be considered as a turnaround strategy of Yahoo's future. So far, Verizon Communications is said to be a potential buyer of the search engine giant which also has been linked over a potential deal with the company. It is now only a matter of time of as to how Yahoo will decide its final move regarding its future.