Marissa Holds the withering Yahoo! fort
Marissa Mayers was one of the first 20 employees at Google. But in July 2012, she took over as President and CEO of Yahoo Inc.’where they were sitting on $5 billion in deteriorating revenue with no clear path to growth. She took up the challenge and has been jostling with the challenge ever since, but seems to finally have given in,with the market share in ad revenue dropping to 2% in the previous year.The last few weeks have been quite turbulent, with share prices dropping and Board Directors quitting (Charles Schwab). All eyes are now on Marissa.
There has been constant speculation on what Yahoo might come up with as their final plan in this make or break situation. Here are a few decisions that she has undertaken in order to save the corporation. We must congratulate her on the bold decision-making,in times when Facebook and Google are almost eating up the market. NewYork Times reported that SpringOwl Asset Management’s investors are quite critical of the company’s new policy and Mayer’s attitude.
1. She made the company invest in AliBaba, one of the reason the name survives to this day. One of her good decisions has also been focus on MAVENS (mobile, video, native and social). Although the growth has been at 44.5% in 2015, it is being estimated at 8.4% in the coming year.
2. She has openly announced that they are open to bid of offers for its core assets, leaving out AliBaba and a few others, of course;
3. They are also selling out patents and real estate;
4. They are laying off about 1700 people(15% reduction). By the end of 2016, the company will be 42% smaller than what it was in 2012, the mayhem in which Mayer arrived. Most of the lay-off is happening in China, India and Canada.
5. The ‘more simplified’ and ‘focussed’ Yahoo will now be resting on four pillars: News, sports, finance and lifestyle;
6. LA Times reported that she is looking for “strategic alternatives”.“Both the board and management feel pursuing these strategic alternatives in parallel is complementary to executing the plan,” Mayer told Marketwatch.
7. As WSJ reported, the company is mostly hiring engineers.Mayer has also announce greater focus on Project Index, an internal project to build a search engine tailored to mobile phones.