Yahoo might be set to sell off its core businesses
Yahoo might be more than two decades old and have a long and storied history in the realm of online search, but that doesn’t mean business can’t go awry.
The California-based company said today that it would scrap the idea of selling its stake in Chinese giant Alibaba in favour of “alternative transactions” – which could result in the sale of core business central to Yahoo.
Yahoo’s decision to sell either its stake in Alibaba or sell its core business comes as desire to be able to afford a tax bill worth billions of US dollars.
The sale of the company’s core businesses could result in the company being stripped down to an entity that will be more appealing to investors than consumers. Marissa Meyer, a former Google executive, was named CEO in 2012 in the hope that she would be able to turn the then-ailing giant back to greatness. Meyer’s strategy, which has seen Yahoo become increasingly mobile focussed has attracted praise, but not the consumer interest the company desperately needs.
Potential purchasers of Yahoo’s main business could include the likes of private equity firms as well as media and telecommunications companies. Previously, in 2008, Microsoft had bid $44.6 billion USD for the company.
Similarly, former US giant AOL was bough out by Verizon earlier this year.