The US internet firm Yahoo has confirmed it is looking at "strategic alternatives" for its business including splitting off its stake in Chinese online retailer Alibaba.
Yahoo said it is setting up a committee to look into how the business can be reorganised to reverse its current financial woes.
The firm's share price has fallen by more than 40% since the end of 2014.
Boss Marissa Mayer has been under pressure to revitalise the business.
Earlier this month Yahoo confirmed it was cutting 15% of its workforce after reporting a $4.3bn (33bn) loss for the year.
The job cuts will mean the company will have around 9,000 staff by the end of 2016.
Ms Mayer said: "Separating our Alibaba stake from Yahoo's operating business is essential to maximizing value for our shareholders.
"We can achieve this by working with the committee... while in parallel, aggressively executing our strategic plan to strengthen our growth businesses and improve efficiency and profitability."
Although Yahoo is still one of the best-known names on the Internet, and has around one billion users, it has fallen behind Google in Internet search.
The poor performance has led some shareholders to call for the management team including Ms Mayer to be removed.
Paul Kedrosky, a California based venture capitalist, says the break up of the company is inevitable and that many investors were surprised when the firm failed to say as much at its last quarterly report.
He said: "The most valuable asset at Yahoo is its shareholding in Alibaba which is worth in the region of $25bn (£17.5bn). The Chinese internet company may buy it [the stake] back or there will be other interested parties."
"But the core business is likely to be split into two or three separate businesses."
Yahoo value
He said it was unlikely that one buyer would be found for the whole business.
Yahoo's market value is currently around $28bn.
In February 2008 Microsoft offered to buy the company for $44bn, while in October 2011 it offered less than half that at $18bn and offers were turned down.
Yahoo has appointed Goldman Sachs, JP Morgan and PJT partners as its financial advisers.
The California tech group said it would not be making any further comment on the matter until an agreement had been reached.
Follow The Forefront on facebook Global audience /facebook Nigerian audience /The Blogger's facebook personal account and facebook (fan page)/ & twitter
Instagram photos and vlog: osagiejoshua
BBM Channel: C002CB006
 |
| ADVERTISE WITH THE FOREFRONT: +234-803-698-6103. For more details CLICK HERE NOW You don't want to have this information alone. Share this story with others on social media with options below. |
No comments:
Post a Comment
Disclaimer!!! Opinions expressed in comments do not represent THE FOREFRONT MEDIA NG's views. All participants are entitled to their opinions. Thank you!!!
Advertise on the Forefront: For advert placement in the blog or advert posts like news updates, reach +2348124620827 [WhatsApp].
Copyright 2023 The Forefront Media Ng. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from The Forefront Media Ng