Yahoo! Inc. (NASDAQ: YHOO)
Yahoo! Inc. (YHOO), a global internet search provider company has recently been in the news regarding a rumored possible spin off of their Alibaba Stake. Yahoo announced now that they no longer plan to spin off their Alibaba Stake due to possible tax implications. Yahoo still seems determined to separate their alibaba stake from their other yahoo core businesses, so they have now announced plans to due the reverse and spin off itself. There has been a push from investors for Yahoo to separate their Alibaba holdings, which is a rapidly growing e-commerce company, and Yahoo Japan from their other businesses. As many believe that most of Yahoo’s current market value comes from those Asian investments. Many investors have soured on Yahoo’s other core businesses as they have been losing ad revenue dollars to Google and Facebook. Investors are displeased with the lack of progress the company has made in the past 3.5 years since the appointment of CEO Marissa Mayer, which was highly praised at the time. The spin-off idea was viewed by some investors as a way for the CEO to buy some more time to turn around the company. Yahoo stated that it could take up to another year before the spin off is complete. Yahoo stock is down 30% from the beginning of the year. Only time will tell if the spin off idea will reverse the trend of the stock price going forward. I would bet on tough times for Yahoo in the near future and would not be a buyer until a more clear strategic plan of growth can be put forward.
Yahoo! Inc. CEO Comments
“In addition to our efforts to increase value and diminish uncertainty for investors, the ultimate separation of our Alibaba stake will be important to our continued business transformation,” CEO Marissa Mayer said in a statement. “In 2016, we will tighten our focus and prioritize investments to drive profitability and long-term growth. A separation from our Alibaba stake, via the reverse spin, will provide more transparency into the value of Yahoo’s business.” Forbes
Yahoo! Inc. provides search and display advertising services on Yahoo properties and affiliate sites worldwide. The company offers Yahoo Search that serves as a starting point to navigate the Internet and discover information; and Yahoo Answers, which enables users to seek, discover, and share knowledge and opinions across mobile phones, tablets, and desktops. It also provides Yahoo Mail that connects users to the people and things; Yahoo Messenger, an instant messaging service; and Yahoo Groups, which allows users to join groups based on shared interests and involvements. In addition, the company offers digital content comprising Yahoo.com that brings together the relevant content; Yahoo Sports, which serves digital sports enthusiasts; Yahoo Finance that offers financial data, information, and tools; Yahoo Weather, which provides users with weather conditions and information for various locations; Yahoo News, Entertainment, and Lifestyles, a collection of digital magazines focusing on news, entertainment, and lifestyle; and Yahoo Screen, a video destination site and application. Further, it provides Flickr, a Web and mobile photo management and sharing service; and Tumblr that offers a Web service and mobile applications. Additionally, the company offers Yahoo Bing Network that connects advertisers with an audience of various users; Native Advertising, which enable advertisers to engage their audience across devices and formats on Yahoos network of consumer products; Yahoo Audience Ads that delivers the right messages to the right users across Yahoo; Yahoo Premium Ads, a digital advertising canvas for brand and performance advertisers; Yahoo Video, which connects brands to their target audience; and ad platforms consisting of Yahoo Gemini, Yahoo Ad Manager Plus, APT, BrightRoll, Flurry, and Yahoo Ad Exchange. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California. Yahoo Finance