As she works to reverse the fortunes of a failing Silicon Valley giant, Yahoo’s Marissa Mayer has fueled a national debate about the office life, motherhood, and what it takes to be the CEO of the moment.“I really like even numbers, and I like heavily divisible numbers. Twelve is my lucky number—I just love how divisible it is. I don’t like odd numbers, and I really don’t like primes. When I turned 37, I put on a strong face, but I was not looking forward to 37. But 37 turned out to be a pretty amazing year. Especially considering that 36 is divisible by twelve!”A few things may strike you while listening to Marissa Mayer deliver this riff, prompted by a question about how her life has changed since her son, Macallister, was born last fall. The first is that she’s not kidding about being a geek. Mayer talks about numbers as if they were people, refers casually to x- and y-axes, and drops terms like stochastic factor (it means a random distribution) in conversation. On business issues, she speaks awkwardly, piling as many likesinto a sentence as Alicia Silverstone in Clueless. But when she gets on to technology, she turns effortlessly articulate.The next is that she is an unusually stylish geek. The day we had that conversation in her white, glossy, minimally appointed office in Sunnyvale, California, she was wearing a red Michael Kors dress with a gold belt and a brown Oscar de la Renta cardigan. This cashmere bolero is her work uniform—she has the same one in ivory, navy, black, hot pink, teal, red, and royal blue, and adds new colors every season. She was hoarse from a cold she picked up flying to New York and back, and it was eight-thirty in the evening, with hours’ more work ahead. But she burbled with excitement as she talked about her job. “I’m having the time of my life,” she told me.What would Marissa Mayer wear? A workweek guide to office dressing.It might also strike you that the paradox of being both glamorous and a geek explains Mayer’s rapid progress in reviving what only a year ago looked like a moribund giant. Before her arrival in July of last year, Yahoo was being written off by the tech industry, investors, even its own staff. A series of failed CEOs—non-techies from Hollywood, advertising, and finance—had gotten little purchase on the fading technology brand. It was far from clear that a six-months-pregnant, 37-year-old Google engineer and first-time CEO could remove the air of irony that had attached itself to Yahoo’s purple exclamation point. “Pregnant in Prada”—see our Marissa Mayer–inspired maternity wardrobe.A year later, the punctuation no longer looks so absurd. Adam Cahan, Yahoo’s head of mobile and another ex-Googler, told me, “Yahoo has released more products in the last six months than probably in the last five years.” But it is the products themselves that represent what he describes as “a dramatic cultural shift.” These include a gorgeous new weather app for mobile phones, a relaunch of the photo-sharing site Flickr, and an update of Yahoo Mail, all of which are drawing the first positive reviews the company has seen in ages. By acquiring Tumblr, the hippest of the social-media sites, Mayer solved the problem of Yahoo’s aging demographics and lack of cool with a single billion-dollar stroke.From then to now: Read a 2009 profile on Marissa Mayer from Vogue’s annual “Age” issue.If Yahoo’s bottom-line growth is still modest, investors are optimistic: The stock price is up almost 60 percent since Mayer joined. But the most important aspect of the transformation she’s leading may be the least tangible. Yahoo, a brand of early adopters before it became one for tech codgers, is returning to its role as a company that matters in Silicon Valley—able to compete for top engineering talent and acquire start-up companies without smothering them. “She is really talented. She is really aggressive,” says Henry Blodget, whose Business Insider site is a partner with Yahoo Finance. “She is extremely driven, and that inspires people. Developers are excited about working for a leader like her, someone who says, ‘I’m in; who’s with me?’ And they’re excited about working for an underdog.”
2013-08-23
2013-05-25
Yahoo Inc has submitted a formal proposal to buy Hulu
LOS ANGELES/NEW YORK (Reuters) - Yahoo Inc has submitted a formal proposal to buy Hulu, joining a growing list of bidders for the video service owned by News Corp and Walt Disney Co, two sources with knowledge of the bid told Reuters on Friday.
Yahoo just this week announced a $1.1 billion acquisition of blogging service Tumblr. It now joins rival bidders for Hulu, including Time Warner Cable Inc, DirecTV, former News Corp president Peter Chernin and Guggenheim Digital Media, sources have said.
It is unclear how much the Internet company bid.
Sources have said Chernin is bidding $500 million, excluding an additional sum to cover Hulu's debt and programming commitments. But a source close to the bidding told Reuters his offer was too low, that Hulu could be worth as much as $1 billion to $2 billion.
Time Warner Cable's bid was fashioned as an equity investment, another person said, as the cable operator hopes to set up a joint venture with other cable companies to operate Hulu.
Yahoo did not respond to requests for comment. Its shares closed up 1.2 percent at $26.33.
At least five bidders have emerged for the five-year-old video service with 4 million users, potentially setting up a bidding competition. A second source close to the bidding said the offers submitted so far were non-binding and dependent on Hulu amending content licensing agreements the bidders found too restrictive.
Silver Lake, a minority owner of influential Hollywood talent agency William Morris Endeavor, has also submitted an indicative letter of interest, the source familiar with the Hulu bidding said, confirming an earlier Bloomberg report. The private equity firm teamed up with William Morris Endeavor, which it invested in a year ago, for the bid, according to the source.
Hulu, which generated revenues of around $700 million last year, streams TV shows online in similar fashion to Netflix Inc. It is being advised in the sale by Guggenheim Partners, a separately funded group from the digital media unit that placed the bid.
Yahoo has gone on an acquisition spree to bring in talent as well as beef up its mobile and online products and content, as CEO Marissa Mayer tries to revive a once-dominant Internet icon that has for years bled users.
Yahoo remains one of the Web's most popular destinations, but has seen its revenue shrink, as consumers
2013-05-07
2013-04-29
Yahoo! decides toclose its Chinese mail service
Yahoo!has decided its Chinese customers don't need their emailaccounts any more,and is closing the service in the country.
A statement from Yahoo!Mail tells users thatthey willhave four months,until 19August, to save their emails andswitch to another provider. Thecompany suggests moving to AliCloud -- if users do so,anymail sent to the old account address will still be received in the newAliCloud inbox up until the end of 2014.
AliCloud is provided byAlibaba,the giant web company that runsmany of China's largest ecommerce sites, including eBay-like Taobao(the tenth-most-viewed site in the world according to Alexa ) andthe payment platform Alipay, which had more than 700 million registered users as of September 2012(far surpassing the 128 million users ofPaypal ).
Yahoo!Mailhas been available in China for more than ten years, but Alibaba and Yahoo!struck astrategic partnership deal inOctober 2005 that saw the Chinese firm take responsibilityforrunning Yahoo!'s key Chinese web products. Yahoo! paid Alibaba $1billion (£656million), andin return gained a 40 percent share ofAlibabastock.
Despite having soldsome of that ,its remaining 24 percent of stock is ahighly-valuable asset -- Alibaba handled 1.1 trillion yuan of sales in 2012, more than eBayandAmazon combined. The companyis expected to undergo an IPO laterthis year, with an expected valuation somewhere between £36 billionto £78 billion.
Under new CEO MarissaMayer,Yahoo! has shedmany of itsservices in a bidto find amore content-focused business strategy .The company announced last week six more of these to be shuttered bythe end of April2013--Upcoming, Yahoo!Deals, Yahoo!SMS Alerts, Yahoo!Kids, Yahoo!Mailand Messenger feature phone apps andolder versions of its Yahoo! Mail app.
However,Yahoo!'s £20 million acquisition of Summly (and the hiring of itscreator, Nick D'Aloisio) last month shows the company isn'tsettling to just cut off redundant limbs, and is actively shiftingits focus.
The closure of Yahoo! Mailin China willleave Yahoo! with itshome web portalas its only presence in the most populous countryin the world. While Yahoo! Mail had reportedly had more than 200 million Chinese customers in 2009 ,its popularity has rapidly waned to the extent it is now only thesixth-most-populer emailservice in China serving only two percentof Chinese emailusers.
Domesticemailproviders,like Alibaba's AliCloud, are vastlymore popular,though millions of customers are still likely to beaffected by Yahoo!Mail's closure.
2013-02-20
Yahoo co-founder Jerry Yang joins Lenovo board as observer
- View PhotoReuters/Reuters - Co-founder of Yahoo Jerry Yang attends the Allen & Co Media Conference in Sun Valley, Idaho July 13, 2012. REUTERS/Jim Urquhart
Yahoo Inc is rolling out a revamped look for its website aimed at making the Web portal more modern and attractive to users.
2013-02-12
Yahoo Inc Chief Executive Marissa Mayer said the company's search partnership with Microsoft Corp was not delivering the market share gains or the revenue boost that it should.
Yahoo Inc Chief Executive Marissa Mayer said the company's search partnership with Microsoft Corp was not delivering the market share gains or the revenue boost that it should.
"One of the points of the alliance is that we collectively want to grow share rather than just trading share with each other," Mayer said at the Goldman Sachs Technology and Internet Conference in San Francisco on Tuesday.
In her first appearance at an investor conference since taking the reins of the struggling Web portal in July, Mayer said she planned to prune a sprawling lineup of mobile apps and she reiterated her focus on enticing consumers to spend more time on Yahoo's online properties, in order to display more money-making ads.
"I'm not confused. Our biggest business problem right now is impressions. Basically can we grow impressions, can we get growth happening here," Mayer said.
Yahoo shares finished Tuesday's regular trading session up 31 cents at $21.21.
Mayer, 37, took over after a tumultuous period at Yahoo in which former CEO Scott Thompson resigned after less than 6 months on the job over a controversy about his academic credentials and in which Yahoo co-founder Jerry Yang resigned from the board and cut his ties with the company.
Yahoo's revenue in 2012 was flat year-over-year, at roughly $5 billion, and down from roughly $6.3 billion in 2010.
"We need to see monetization working better because we know that it can and we've seen other competitors in the space illustrate how well it can work," Mayer said of the search deal with Microsoft.
Yahoo and Microsoft entered into a 10-year search partnership in 2010, hoping their combined efforts could mount a more competitive challenge to Google Inc, the world's No.1 search engine. But the partnership has not lived up to expectations.
Google remains the dominant search engine, with a 66.7 percent share of the U.S. market in December, almost unchanged from its 66.6 percent share two years earlier, according to online analytics firm comScore.
Microsoft had 16.3 percent share and Yahoo had 12.2 percent share in December, a reversal of two years earlier when Yahoo's U.S. search share was 16 percent and Microsoft had 12 percent share.
Yahoo's stock has risen more than 30 percent since Mayer took the helm in July, reaching its highest levels since 2008.
Analysts say that part of the stock's rise has been driven by significant stock buybacks, using proceeds from a $7.6 billion deal to sell half of its 40 percent stake in Chinese Internet company Alibaba Group.
Mayer said that she viewed the company's relationship with Yahoo Japan, which is partly owned by Softbank, as "strategic" to the company. Under previous CEOs, Yahoo had engaged in unsuccessful discussions to "monetize" its roughly 35 percent stake in Yahoo Japan.
2013-01-28
Yahoo Revenue rises
Yahoo Inc posted a 4 percent gain in net revenue to $1.22 billion in the fourth quarter, when an increase in search advertising sales offset weakness in the Web portal's display ad business.
The company forecast net revenue -- which excludes fees shared with partner websites -- of $1.07 billion to $1.1 billion in the current quarter, trailing the $1.1 billion that Wall Street analysts expect on average.
Shares in Yahoo, which is trying to stave off declines across much of its business and revive growth, were up 1.5 percent in after hours trade. They had risen 4.5 percent before the revenue projections were disclosed on an analysts' conference call.
"We got the revenue acceleration we were hoping for. Display was down, but search is doing better" said Sameet Sinha, an analyst at B. Riley Caris.
"As long as in the near-term things are not bad, I think the stock will generally act positively while we wait for Marissa Mayer to deliver," said Sinha.
The company said on Monday its fourth-quarter net income was $272.3 million, or 23 cents per share, versus $295.6 million, or 24 cents per share in the year-ago period.
Excluding certain items, Yahoo said it had earnings per share of 32 cents, versus the average analyst expectation of 28 cents according to Thomson Reuters I/B/E/S.
Chief Executive Marissa Mayer is moving to revive the company's fortunes after several years of declining revenue. Yahoo's stock has risen roughly 30 percent since she became CEO, reaching its highest levels since 2008.
Yahoo said it repurchased $1.5 billion worth of shares during the fourth quarter. Shares in the company were up 1.5 percent at $20.61 in extended trading from a close of $20.31 on the Nasdaq.
2012-12-04
Yahoo acquired a five person video chat company OnTheAir
SAN FRANCISCO (Reuters) - Yahoo Inc said it acquired a five-person video chat company on Tuesday, the second deal by new Chief Executive Marissa Mayer to bolster Yahoo's mobile capabilities.
Yahoo did not disclose the financial terms of its acquisition of OnTheAir, but said the team would be joining Yahoo's mobile group.
A Yahoo spokeswoman said that Yahoo had not plans to offer OnTheAir's existing product, which lets Web users host live video conversations and was launched in March.
The deal marks the second small, mobile-oriented deal since Mayer became CEO earlier this year. In October, Yahoo acquired Stamped, a New York-based mobile startup that allows consumers to share information about favorite restaurants and music on their smartphones.
Mayer, a former Google Inc executive, has said that her top priority is to create a coherent mobile strategy for Yahoo and that she intends for at least half of the company's technical workforce to be working on mobile products.
Shares of Yahoo were up 1.5 percent at $18.82 in trading on Tuesday.
2012-11-19
Yahoo shares reach 18 month high 18.36 +0.50 (2.80%)
11/19/2012 Yahoo shares reach 18-month high as investors warm to new CEO SAN FRANCISCO (Reuters) - Yahoo Inc shares reached their highest level in a year and a half, as investor confidence grows that new Chief Executive Marissa Mayer can pull off a comeback that eluded three of her predecessors. The Internet pioneer has yet to actually provide Wall Street with any hard evidence that its business is turning a corner - and she has warned that it will be a lengthy job - but investor faith in the ex-Google executive is running high.
2012-10-22
Yahoo Inc's new CEO Marissa Mayer sketched out her plan for revamping the mobile and search advertising business on Monday
Yahoo Inc's new CEO Marissa Mayer sketched out her plan for revamping the mobile and search advertising business on Monday, outlining publicly for the first time her vision for getting the ailing Web company back on its feet.
Mayer, once a rising star at Google Inc who took charge at Yahoo in July, told analysts on a conference call she wanted to focus Yahoo's efforts around the "daily habits" of users such as email, the home page, Internet search and mobile devices.
But her top priority is to fashion a coherent strategy to manage the industry's transition to mobile devices, a fundamental shift that some of the most innovative Silicon Valley companies - from Facebook Inc to Google Inc - are struggling with.
"The mobile wave is a huge wave for us to ride," Mayer said on the conference call.
The 37-year-old CEO talked about working more closely with software provider and Web search partner Microsoft Corp, while employing technology to shore up its display ads business through such features as automated buying.
She added that the company is likely to begin withdrawing from international businesses that fail to grow. This month, executives said the company will pull out of South Korea, a market full of local rivals. And she said that the company would primarily focus on "smaller-scale" acquisitions to bolster Yahoo's products, assuaging some shareholder concerns that the company could embark on an expensive shopping spree.
Yahoo shares were up more than 4 percent at $16.50 in after hours trading on Monday.
"She handled the call very well," said Gabelli & Co analyst Brett Harriss.
"You have the tone of a professional CEO who just wants to block and tackle better and move the company forward," he said, noting that he detected echoes of Google's business approach in Mayer's comments.
Roughly 700 million users visit a Yahoo website every month - putting it in the top ranks globally. But the amount of activity people engage in on many sites is steadily declining and its smartphone offerings are deemed lackluster.
SHIFTING COURSE
Mayer is expected to focus on revamping Yahoo's technology and products, shifting course from the media-centric approach embraced by her immediate predecessor, Ross Levinsohn.
The company's quarterly earnings beat expectations, but Wall Street had been keen to hear Mayer outline her plan for reviving the struggling Web company's revenue growth.
"The fact that the quarterly results didn't show any massive deterioration was a decent sign and gives her probably more time," said Macquarie Research analyst Ben Schachter.
He said the vision outlined by Mayer did not sound radically different from what previous Yahoo executives have espoused, but the company has continually struggled to implement that strategy.
"It's about can Marissa and team execute and that's what it's been about for the past few management teams," Schachter said.
Excluding a $2.8 billion gain related to the sale of Alibaba Group shares, Yahoo said it earned $177 million in income from operations and adjusted net earnings of 35 cents per share in the third quarter.
Analysts polled by Thomson Reuters I/B/E/S were looking for adjusted EPS of 25 cents.
Net revenue, which excludes fees paid to partner websites, was $1.09 billion compared with $1.07 billion in the year ago period.
Yahoo ended the quarter with 12,000 employees, down more than 12 percent from 13,700 a year earlier.
(Additional reporting by Gerry Shih. Editing by Andre Grenon)
2012-10-21
Yahoo backs to technology instead of contents under new CEO
SAN FRANCISCO (Reuters) - Marissa Mayer, who earned a reputation for decisive action and intensity during her 13-year stint at Google Inc, has spent her first months as Yahoo Inc CEO quietly moving the Internet pioneer back to its roots in technology.
Long torn between whether it should focus on media content or on tools and technologies, Yahoo under Mayer is being positioned firmly in the latter camp, according to sources inside and outside the company.
Her hires, acquisition musings, and other early moves hint at an ambitious, technology-driven comeback plan designed to revitalize aging but well-trafficked properties such as Yahoo Mail, Yahoo Finance and Yahoo Sports.
Yahoo has been criticized for allowing these sites to stagnate - they look very much like they did five years ago, and do not have many bells and whistles to encourage users to spend more time on them.
Mayer, 37, wants to make Yahoo's properties much more interactive, on PCs and on mobile devices, using social media tools to personalize the user experience and new technology to boost advertising sales. Her well-known focus on user design is expected to result in a simpler, less-cluttered email and home page, one source said.
Yahoo declined to comment for this article. Mayer, who gave birth to her first child weeks ago, will unveil details of her comeback plan when Yahoo reports quarterly results on Monday.
Mayer's focus on technology in many ways reverses a course set by her predecessors, who had concentrated on media content deals, such as those that gave prime billing to Walt Disney Co's ABC News or CNBC, or to bring an original program starring actor Tom Hanks to its website.
The new strategy is not without risks: it positions Yahoo squarely against Facebook Inc and Google. It also risks alienating a large, media-focused contingent that is already weakened by the departure of Ross Levinsohn, who had championed a media-centric approach when he was interim CEO before Mayer's arrival in July.
Mayer has been meeting with Internet gurus including AOL Inc CEO Tim Armstrong, another ex-Googler; Silicon Valley lawyer Larry Sonsini; and Wall Street investment bankers, according to people familiar with the matter.
Bankers have pitched Mayer and her team on a slew of potential acquisitions, and they appeared to show interest in restaurant reservation site OpenTable Inc and advertising technology companies PubMatic, Turn and Millennial Media, one of the people said.
Caterva, a small start-up whose technology analyzes social media activity, has also been in low-level talks with Yahoo, said another source familiar with the situation.
OpenTable and PubMatic declined comment. Millennial Media and Caterva did not respond to requests for comment.
With more than $2 billion in cash and short-term securities, Yahoo has the money to acquire engineering talent or bolt-on services. Two types of deals are under consideration: companies that will increase user engagement, including on mobile, and those that will boost advertising returns, source said.
"What they've signaled so far is that the deals will be more niche in nature, smaller deals that maybe have a lot of promise," said Ken Allen, a director at Blackstone Advisory Partners.
TALENT HUNT
Many industry insiders believe Mayer is Yahoo's final hope for reversing a years-long decline from the pinnacle it once attained as the leading gateway to the Internet. Four of her predecessors have tried in vain to right the ship - Yahoo's market value of $19 billion, is less than half its $44 billion value in 2005.
Mayer, who earned a masters degree in computer science from Stanford University specializing in artificial intelligence, has moved quickly on the personnel front, shelling out rich pay packages to attract ex-colleagues from Google and elsewhere.
She brought in ad technology systems guru Henrique de Castro as chief operating officer; a new finance chief in Ken Goldman, who also has tech chops, to replace Tim Morse; and Jacqueline Reese to assume the dual role of hiring and acquisitions, suggesting the start of a train of "acqui-hires" or buying small companies for their engineering talent.
"She's spending almost all her time with the product folks. She's spending it on technology. She's talking about engineering hires," a person close to Yahoo said about Mayer's early days.
Yahoo's advertising technology products, headed for the auction block before Mayer's arrival, are back in favor. De Castro, her highest-profile hire, is known for a deep-understanding of the complex advertising landscape, where dozens of businesses and technology providers are interlinked.
Mayer has also shown an interest in the company's ad tech platform, including Right Media, an automated exchange that allows marketers to blast ads across a network of websites.
The group has been a long-standing source of division among Yahoo's management, including with Levinsohn, who was keen on divesting the unit, according to two sources close to the matter. But shortly after Mayer's arrival, Yahoo told AdAge that it had no intention of selling Right Media.
Yahoo's advertising salesforce, responsible for signing splashy home-page ad deals and premium marketing campaigns, has received scant attention from the new CEO, say people close to the company. Michael Barrett, Yahoo's chief revenue officer hired by Levinsohn shortly before Mayer's arrival, recently announced his resignation, according to a source familiar with t
2012-10-19
Yahoo quit South Korea
Yahoo Inc's South Korean operation said on Friday it will quit the country, underscoring its struggle against Google Inc and local competitors expanding aggressively into mobile advertising and online services.
South Korea is the first Asian country Yahoo is leaving, the firm said. An industry pioneer and household Internet brand, it has been overshadowed by global rivals including Facebook Inc and Google in recent years.
"Yahoo has faced several challenges in the past couple of years and decided to pull out of the (Korean) business to put more resources on global business and become more powerful and successful," Yahoo said in a statement.
Yahoo Korea, which started business in 1997 and is wholly owned by the U.S. search company, has around 200-250 employees in South Korea. It will terminate Korean online portal services in December, the company said.
In the South Korean market, it has failed to beat local rivals such as NHN Corp, Daum Communications Corp and SK Communications Co.
Yahoo appointed Google veteran Marissa Mayer as its chief executive in July, its third CEO in less than a year.
Former CEO Scott Thompson resigned after less than 6 months in the job over a controversy over his academic credentials.
Before that, Yahoo co-founder Jerry Yang had stepped down as CEO, and an internal reorganization cut thousands of jobs.
Yahoo remains one of the world's most powerful websites, with more than 700 million monthly visitors who use products like its email service and read its news pages.
2012-09-25
New CFO hired in Yahoo
2012-09-18
Yahoo sold half of Alibaba holding for $7.6 Billion
SAN FRANCISCO (AP) — Yahoo has completed a long-awaited $7.6 billion deal with China's Alibaba Group, generating a windfall that could help ease the pain of Yahoo shareholders who have endured the company's foibles during the past few years.
After Yahoo distributes most of the proceeds to its shareholders, its recently hired CEO Marissa Mayer will still have an extra $1.3 billion to finance acquisitions or hire new talent as she tries revive the company's revenue growth.
Tuesday's resolution comes four months after Yahoo Inc. and Alibaba Group Holding Ltd. outlined the details of a complex transaction that took more than two years of on-again, off-again negotiations to hammer out. The deal will give Alibaba greater autonomy as it prepares to pursue an initial public offering of stock within the next three years, while rewarding Yahoo for one of the few moves that has gone right for the troubled company in the past few years.
Yahoo paid $1 billion for a 40 percent stake in Alibaba in 2005 and is now reaping a huge return. Alibaba is paying $7.1 billion in cash and stock to buy back half of Yahoo's holdings. Another $550 million is being paid to Yahoo under a revised technology and patent licensing agreement with Alibaba.
After paying taxes, Yahoo estimates it will pocket about $4.3 billion to supplement the $1.9 billion in cash the company had as of June 30.
Yahoo, which is based in Sunnyvale, Calif., plans to spend about $3 billion of the Alibaba proceeds buying back its own stock in the upcoming months, leaving Mayer with some financial flexibility to pay for other items on her turnaround agenda.
"This yields a substantial return for investors while retaining a meaningful amount of capital within the company to invest in future growth," Mayer said in a statement.
The decision on how to handle the proceeds may have reflected a compromise between Mayer and Yahoo's board.
Before hiring Mayer away from Google in July, Yahoo had pledged to distribute virtually all of the proceeds from the Alibaba sale to its shareholders.
But the company wavered from that stance last month when it filed regulatory documents disclosing that Mayer was considering holding on to the money to help carry out her vision for Yahoo. Without providing specifics, the documents said Mayer was mulling possible acquisitions.
Analysts have speculated that Mayer may try to make a big splash by putting together a takeover offer for one of the Internet's hot websites, such as online scrapbook Pinterest or check-in service Foursquare
Another big payoff looms for Yahoo when Alibaba goes public, an event expected by the end of 2015. Alibaba, which owns China's version of eBay and e-commerce sites, has the right to buy back half of Yahoo's remaining 23 percent stake before the IPO. Yahoo then could chose to sell its remaining Alibaba stock after the shares begin trading.
Alibaba currently has a market value of about $40 billion, based on the prices paid for the stock that the company recently sold to raise enough money to finance the Yahoo deal. Yahoo, in contrast, has a market value of less than $20 billion.
A big chunk of Yahoo's value remains locked up in Alibaba. Based on Alibaba's market value and the preferred shares it just picked up, Yahoo is still sitting on Alibaba stock worth about $8.9 billion. That amount will increase if Alibaba is able to continue to thrive as more people in China get online access.
"The completion of this transaction begins a new chapter in our relationship with Yahoo," Alibaba CEO Jack Ma said in a statement.
While Alibaba has been growing, Yahoo has been shrinking. The contraction has occurred even as the advertisers that provide most of Yahoo's revenue have been spending more money on the Internet. Most of that online marketing has been flowing to Internet search leader Google Inc. and, to a lesser extent, Facebook Inc.'s popular social network.
Yahoo's financial funk has depressed its stock for years, increasing the pressure on the company's management to extract money from its Alibaba investment to reward its shareholders.
Since beginning its discussions with Alibaba in 2010, Yahoo has had five CEOs, including two interim leaders. The deal head already been agreed upon in May, while Yahoo was being run by Ross Levinsohn, who left shortly after the company hired Mayer in July.
Although Mayer is highly regarded in the Internet industry, investors still seem skeptical about whether she can find a way to pump up a stock that has been stuck below $20 for the past four years. The stock was trading around $35 when Yahoo invested in Alibaba seven years ago.
Yahoo shares added 22 cents, or 1.4 percent, to end Tuesday's session at $15.90. That's about the same level where the shares stood when Mayer took the helm. The technology-driven Nasdaq composite index has climbed 10 percent during the same period while the broader Standard & Poor's 500 has risen by 8 percent.
Buying back stock could boost Yahoo's stock by reducing the company's outstanding shares. With fewer shares trading, it w
2012-08-28
Yahoo got a new maketing chief
SUNNYVALE, Calif. (AP) — Yahoo is bringing in a new chief marketing officer as the troubled Internet company tries to burnish its image and revive its revenue growth under recently hired CEO Marissa Mayer.
Kathy Savitt will start working as Yahoo's marketing chief on Sept. 14. Mayer persuaded Savitt to leave Lockerz, an online commerce service that she has been running since 2009.
Savitt, 48, will remain Lockerz' chairman and also will make a personal investment in the company she is leaving behind. Mark Stabingas, Lockerz' chief operating officer, will replace Savitt as the startup's CEO.
The hiring announced Monday is one of the first major pieces in the management team that Mayer is cobbling together to help turn around Yahoo. Mayer, 37, became Yahoo's CEO six weeks ago, ending her 13-year stint as a key executive at Internet search leader Google Inc.
Yahoo, which is based in Sunnyvale, Calif., has been stuck in an extended financial funk that has depressed its stock. Mayer is the fifth CEO in the past five years to attempt a turnaround.
"Yahoo is at an important and unique inflection point in its storied history," Savitt said in a statement.
Before launching Lockerz in 2009, Savitt was a marketing and communications sharpshooter at retailers American Eagle Outfitters Inc. and Amazon.com Inc.
2012-08-10
Marissa Mayer, may revise the Internet company's plan to pay shareholders billions of dollars from an anticipated windfall later this year.
Yahoo says its new CEO, Marissa Mayer, may revise the Internet company's plan to pay shareholders billions of dollars from an anticipated windfall later this year.
The potential change disclosed Thursday caused Yahoo's stock to drop nearly 4 percent in extended trading.
Mayer is mulling a shift in direction as part of a sweeping review of the company. Yahoo Inc. lured Mayer away from rival Google Inc. three weeks ago to become its fifth CEO in the past five years.
As part of her evaluation, Mayer is scrutinizing Yahoo's agreement to sell half its stake in Chinese Internet company Alibaba Group Ltd. for $7.1 billion.
Yahoo had promised to reward shareholders with most of the Alibaba proceeds. Now, Yahoo says Mayer may have something different in mind.
2012-07-23
Ex-Yahoo CEO becomes head of ShopRunner
| 07/23/2012 Ex-Yahoo CEO becomes head of ShopRunner |
| Recently ousted Yahoo CEO Scott Thompson has landed a new job leading ShopRunner, an online service that provides two-day shipping from a variety of Internet retailers. |