One of the most iconic and largest internet business companies in the world may soon witness a swift end in the New Year. Yahoo! Inc.(NASDAQ:YHOO) has been undergoing one of the most tumultuous times in the industry. The company seems to have displayed a very lackluster performance last year in over a decade. The company has undergone various rounds of austerity measures to ensure better business models, however, have been ineffective in the company’s core competency. The internet business wing of the company has failed miserably under the leadership of Marissa Mayer, the company’s CEO who took over in 2012.
The marathon meetings
The company convened a marathon board meeting of all of the company’s nine board members. Ironically, while the company’s internet business began to fall, the firm’s investments in Alibaba Group Holding Ltd (NYSE:BABA) grew steadily. Last week’s decision by the board members was to sack some of the members of the board that may have been directly responsible for the fall. They may be taken out on grounds of incompetence; however, the company has not yet issued any official statement. Reports also say that the intransigence and unquestionable authority of CEO, Marissa Mayer may have also led the company to such an ignominious plight.
In the board meetings that lasted throughout last week, the decision to spin off Yahoo’s stake in the e-commerce giant Alibaba was rejected. Reports say that the internet business wing and Yahoo Japan will be put up for a bid to the open market of buyers instead. The board currently nurses the tone of the CEO, Marissa Mayer’s departure. The common belief is that the departure of the CEO could result in some much needed changes and a better direction for the company.
The current board has a general consensus that the previous board that was responsible for the election of Marissa Mayer to the CEO position is equally culpable. They maintain that the previous board served to ingratiate themselves with the CEO and were far too obsequious, which resulted in an unconditional acceptance of every fiduciary or business decision carried out by Mayer.
Many dissenters within the organization seem to vent their discontent on the general attitude towards the board members. Many senior officials within the company mentioned that the previous board had no idea about the internet business wing of the company and served merely as a rubber stamp. The company may face some job cuts ensuing the sell-off of the internet businesses.