• Growing people

    What is the most powerful way to develop the capabilities of people at work? Ian Mann answers.

  • Wealth and poverty

    True riches would be to create a safe and satisfied community for all South Africans.

  • SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

All data is delayed
Loading...
See More

Yahoo shares dip as CEO mulls strategy

Aug 10 2012 08:35
AFP

San Francisco - Yahoo stock price slid on Thursday on word that freshly-appointed chief Marissa Mayer could overhaul the struggling internet pioneer's strategy to regain its faded glory.

Mayer is re-evaluating Yahoo's plans, including a promise that billions of dollars from the sale of part of its stake in Alibaba Group in China would be channelled to stockholders, probably by buying back shares, according to paperwork filed with the US Securities and Exchange Commission.

"Ms Mayer is engaging in a review of the company's business strategy," Yahoo said in the filing.

The review may lead to changes to "previously announced plans for returning to shareholders substantially all of the after-tax cash proceeds of the initial share repurchase" under the terms of a deal inked with Alibaba in May, according to the SEC paperwork.

"In short, Mayer may keep the cash to bolster the books or she may use it for deals or other purposes," Jon Ogg wrote in a blog post at investment website 24/7 Wall St.

"This is how a new CEO can manage to irk shareholders who are wanting some payback for their patience."

Yahoo! shares dropped 3.56% to $15.44 in after-market trading.

In May, Yahoo raided its archrival in its latest quest for resurrection, hiring Mayer when she was a key Google executive to start Tuesday as the struggling Internet pioneer's new chief.

Mayer - one of Google's first employees - is now arguably the most prominent woman in Silicon Valley and a rare female CEO at one of America's largest firms.

Yahoo has been trying to reinvent itself as a "premier digital media" company since the once-flowering internet search service found itself withering in Google's shadow.

As the company strived for a new identity, it saw an exodus of talent that commenced during a failed bid by technology giant Microsoft to buy Yahoo four years ago for about $45bn.

Yahoo has been cutting jobs in a purge aimed at becoming a "smaller, nimbler, more profitable" company.


*Follow Fin24 on Twitter, Facebook and Google+.

yahoo  |  marissa mayer

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Have you experienced FNB’s outage problem?

Previous results · Suggest a vote

Loading...