Yahoo could become a tale

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  • 6 years ago
  • Posted: December 11, 2015 at 9:57 am

It’s unfortunate that Yahoo could become a tale. Yahoo was the main online communication platform sometimes back. I still remember the day I signed up for my first Yahoo account. It was after high school and everybody was going online. The pressure from my friends pushed me to getting an account on Yahoo and later on coming up with a Facebook account. Back in the day, creating a customized Yahoo was the only artistic and incredible thing to do online – a beautiful animation or a flower floating on your account – amazing.

Now, Yahoo is a forgotten story…well going to be. On my list of sites, Yahoo is not even top ten. I have my Facebook site, Twitter, my non-Yahoo email and many news sites.

“At one point, AOL and Yahoo seemed like they were the Internet,” said Brett Sappington, director of research for Parks Associates.

Now, Yahoo plans to pull off its stake in Chinese e-commerce giant Alibaba, worth more than $30 billion. Instead, it will reverse course and look at “alternative transaction structures” to separate the stake. That approach could make it easier to ultimately sell the spun-off core business.

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“Informed by our intimate familiarity with Yahoo’s unique circumstances, the Board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realized by separating the Alibaba stake from the rest of Yahoo,” Chairman Maynard Webb said in a statement. “To achieve this, we will now focus our efforts on the reverse spin-off plan.”

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According to Cnet, Yahoo’s board voted unanimously for the reverse spin-off, but it wasn’t the first choice for action because it will take a year to perform and involves more outside parties, CEO Marissa Mayer said on a conference call. Yahoo needs the approval of shareholders, US regulators, Yahoo investor SoftBank and business partners of which there are “too many to name,” Chief Financial Officer Ken Goldman said on the call.

Google’s former executive became Yahoo’s CEO in 2012. She worked hard to refurbish the company by making it suit the mobile era. She refreshed each of its mobile properties, including Yahoo Mail, Weather, Finance and Sports. In addition, she made sure that Yahoo housed the best in media. However, she was not able to regain the market since other platforms were introducing amazing features. The company was overtaken by Google, Amazon, Facebook and Netflix.

Brett Sappington, director of research at Parks Associates, said one of Yahoo’s biggest mistakes was not making bets in new and innovative areas, as Google and Amazon have.

“In the world of the Internet, which is diverse and incredibly unpredictable, you have to be adaptable and open to change,” said Sappington. Yahoo in contrast really defined their business very tightly and now could become a tale.


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