Earlier this week, Yahoo! Inc.(NASDAQ:YHOO), one of the largest internet services and internet businesses in the world, may see the curtain close. The internet business and services company seem to convene a meeting to cease their operations and services for one last time. The multi-billion dollar company is contemplating selling off a major chunk of its internet business to any potential buyer in the market. The company will be convening one of the biggest board meetings in the IT sector to discuss and decide on the continuance and the relevance of the entity in the current market scenario.
The top executive meeting
Some of the top management met yesterday and will carry out marathon meetings until the end of the week to reach a consensus on the matter. Members of the board that occupies top positions in the company have been canceling meetings and conferences outside of the meeting. A member of the board had canceled on an appearance he was to make at the Credit Suisse investment conference. Reports state that Yahoo may be leaning in favor towards managing the 30 billion dollars’ worth of company investments in Chinese e-retailer, Alibaba’s stocks.
Even though the matter is far from a decision, there still is apprehension in the market regarding the future and plight of the company and its employees. There is evidence of Yahoo scouting for a potential buyer for the consortium of internet business properties created and owned by Yahoo. Even though buyer market is wide open for any client, Yahoo is focusing on private equity firms to undertake the buyout. Many sources state that there are various types of private equity firms circling the deal, but none has been made public.
A potential CEO ousting
Marissa Mayer, who took over as Yahoo’s CEO, was unsuccessful in turning around Yahoos business interests and profitability. The board will also decide on the future of Marissa Mayer’s term within the organization. Her term and stability in the company seem shaky. In light of the recent developments at Yahoo, the company’s financial advisor suggested that it ought to look at a sell-off of the internet business wing. Most of Yahoo’s investment lies in Asian markets that primarily comprise of Japan and China
Yahoo’s 15 percent stake in Alibaba Group Holding Ltd (NYSE:BABA) is worth 32 billion dollars while Yahoo’s total cash and short-term investments were estimated at about nine billion dollars. Due to the focus made in investments by Yahoo, the company’s core business valuation stands at 3.9 billion dollars.