Yahoo is considering selling its core internet business, in the latest of what feels like a constant stream of revival talks at the global business, according to Bloomberg.
The report issued over the weekend suggested that while no bank had been appointed the strategy is being considered following pressure from activist shareholders, including Starboard and Spring Owl, over its future.
CEO Marissa Mayer was tasked with turning around the ailing online giant when appointed in 2012, and while she has made big changes and a raft of acquisitions to alter the shape and direction of the business, shareholders are not happy with progress.
Yahoo stock, which was down 34% in 2015, rose immediately after the report was published.
Bloomberg business analyst Jitendra Waral suggested in a Bloomberg video that while the core business valuation is negative, if it were to sell off segments, other businesses such as US telco network Verizon might find huge value in units such as its programmatic video or Gemini mobile and native ad platform.
Yahoo had been planning to spin off its non-core assets such as its stake in Alibaba, but this was suspended in December over controversy about the tax cost.
Yahoo operates in Australia as a joint venture with Channel 7. It’s not clear how any spin-off or sale could impact operations here.
Starboard has also called for an overhaul of Yahoo’s management and there are also reports circulating about a 10% cut in staff in the US.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop me a line at rosiebaker@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day. Need a job? Visit adnewsjobs.com.au.