Does Yahoo! Inc. (NASDAQ:YHOO) Has No Solutions For A Revolutionary Turnaround?


Marissa Mayer, the CEO of Yahoo! Inc. (NASDAQ:YHOO), is facing sharp criticisms from shareholders and analysts to step down from her CEO podium. Despite such response from all around her, Mayer isn’t giving any indication to do so. But, she is also not indicating as to what can be done to make Yahoo! Inc. (NASDAQ:YHOO)’s presence felt. The company has become more or less like “Mr. Nobody” in the tech and Internet industry. The Board has agreed to go for re-election in June 2016, but let us consider the other side of Yahoo!

In fact, after the meeting with Yahoo!’s investors, an analysts with SunTrust, Robert Peck wrote a letter addressed to the Directors to fire Mayer. Meanwhile, an activist investor, Jeffrey Smith opines that Mayer should spin off the company’s most treasured asset, i.e., its $30 billion stake in Alibaba. He also suggested selling the Internet business of Yahoo!.

The activist investors are even threatening to kick off investors-driven revolution with an objective of massive overhaul in the entire management. This mutiny, if successful, may also lead to stepping down of the Yahoo!’s present CEO.

Will CEO’s stepping down bring any change in Yahoo!?

Given the present scenario in the company, it doesn’t seem that Yahoo! Inc. (NASDAQ:YHOO) can come out from the shackles of doom in the foreseen future, with a mere management transition. Since 2007, Yahoo! has already seen six CEOs, each one of them without a concrete plan to bring a revolution in the company.

The concrete solution to revamp Yahoo!

To refurbish Yahoo! what is required is a massive deal. It goes without saying that Yahoo! needs to shut down one of the businesses, but which one it would be is still under speculation. The best to answer that would be Yahoo! only.

At present, the only possible solution would be searching for a prospective buyer. Yahoo! buyout can withhold the interests of investors; instead of Mayer stepping down from her designation.

The company needs to at first, learn the interests of shareholders and with thorough wisdom, decide a massive deal that can at least ensure that Yahoo! is still alive.

Is Yahoo! a “princess without a crown?”

Yahoo! has de-motivated employee and task force, which is indicative of the plight of this company. The major blow to Yahoo! was 13 crucial executives leaving the company.

Falling revenues, dispirited employees, no ranking among top 50 free apps on Apple’s store and frustrated stakeholders- that is all for Yahoo! at present.