Last month, Yahoo! Inc. executives have announced a plan to spin off its main Internet business in an attempt to fix the slow revenue rate they've been suffering for the past several years. Now, they may have dumped the idea right after its conception and would rather sell the web business.
The final decision has not been officially announced but inside sources have indicated that the company has abandoned the initial idea because of pressures coming from activist investors.
Though the idea is out there, Yahoo has not yet reached the conclusion to sell. The company has not yet contacted the bank to run financial analysis and potential buyers are still waiting in the wind.
Back in December, Yahoo Chairman Maynard Webb expressed that the company has no intention of selling:
There is no determination by the Board to sell the Company or any part of it.
Back then, they have expressed their intent to put more focus on putting value back into the business while working on transforming its operations. Webb believes the business is undervalued which is why the strategic move to make Yahoo more sellable was ideal - at the time.
Focusing more on the financial side of Yahoo, shares rose to 1.6% or $30.63 while stock fell 34% by the end of 2015.
Analysts have motioned that if the company waits any longer, the market may readjust and Yahoo's worth will also be readjusted. If Yahoo plans to sell the web-portal, Alibaba, Yahoo would then be a holder for its assets while keeping Web operations intact.
Verizon Communications Inc. looks like it is going to be a potential buyer. CEO Lowell McAdam and CFO Fran Shammo both said it just makes sense to buy it because of the billion user attraction it brings. Such traffic can be beneficial to Verizon and finds the sale very appealling but has not made a motion to formally purchase the business yet, reports indicated.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
