3 ms·

Yahoo has been poorly managed for several CEOs, it's not a new turn of events. She hasn't helped things, but it's not like Yahoo was a rocket ship before she wa

by jonknee 11y ago

Yahoo has been poorly managed for several CEOs, it's not a new turn of events. She hasn't helped things, but it's not like Yahoo was a rocket ship before she was hired. She had an amazing opportunity to change things while Alibaba was keeping Wall Street happy, but that window has closed and she has nothing to show for it other than making herself very very wealthy. She'll be gone soon.

SkyMarshal 11y ago
I missed why Yahoo! divested themselves of their large ownership stake of Alibaba, why did they do that?
- jonknee 11y ago
  They haven't fully, but want to spin it off into its own company so that taxes don't have to be paid. That's not going well for them (the IRS didn't say they were A OK) and meanwhile BABA shares have tanked (ended the first trading day at $93.89 and is currently at $69.75). tl;dr Mayer can no longer hide behind everyone's hopes and dreams of a monster Alibaba IPO.
- spikels 11y ago
  Expected to happen at end of year because shareholders basicly insisted on it. Yahoo owns a minority stake in Alibaba - a huge fast growing company. Yahoo is worth $30 billion but the Alibaba stake is worth $23 billion* and they also have a minority stake in Yahoo Japan worth $2 billion* and $5 billion in cash. It doesn't make sense for an operating company to hold investments worth many times more than their core business. Yahoo today trades more on what happens to Alibaba than anything Yahoo management has control over. This has perverse effects like huge management incentive bonuses based solely on Alibaba's success. Not to mention they would have saved billions in taxes if they had spun it off years ago. *-pre-tax http://www.cnbc.com/2015/10/21/yahoos-business-now-worth-less-than-nothing.html http://www.cnbc.com/2015/10/21/yahoos-business-now-worth-les...

3 ms·

Yahoo has been poorly managed for several CEOs, it's not a new turn of events. She hasn't helped things, but it's not like Yahoo was a rocket ship before she wa

by jonknee 11y ago

SkyMarshal 11y ago
I missed why Yahoo! divested themselves of their large ownership stake of Alibaba, why did they do that?
- jonknee 11y ago
  They haven't fully, but want to spin it off into its own company so that taxes don't have to be paid. That's not going well for them (the IRS didn't say they were A OK) and meanwhile BABA shares have tanked (ended the first trading day at $93.89 and is currently at $69.75). tl;dr Mayer can no longer hide behind everyone's hopes and dreams of a monster Alibaba IPO.
- spikels 11y ago
  Expected to happen at end of year because shareholders basicly insisted on it. Yahoo owns a minority stake in Alibaba - a huge fast growing company. Yahoo is worth $30 billion but the Alibaba stake is worth $23 billion* and they also have a minority stake in Yahoo Japan worth $2 billion* and $5 billion in cash. It doesn't make sense for an operating company to hold investments worth many times more than their core business. Yahoo today trades more on what happens to Alibaba than anything Yahoo management has control over. This has perverse effects like huge management incentive bonuses based solely on Alibaba's success. Not to mention they would have saved billions in taxes if they had spun it off years ago. *-pre-tax http://www.cnbc.com/2015/10/21/yahoos-business-now-worth-less-than-nothing.html http://www.cnbc.com/2015/10/21/yahoos-business-now-worth-les...