Yahoo investors mount pressure for turnaround

News Broadband Global 14 DEC 2015
Yahoo investors mount pressure for turnaround

Yahoo is facing pressure from investor groups against giving CEO Marissa Mayer more time to show progress on the company’s turnaround, reports the Wall Street Journal. Canyon Capital Advisors, one of Yahoo’s 15 biggest shareholders, wrote to the board on 11 December urging it to find a buyer for the core internet business or the whole company.

Hedge fund SpringOwl Asset Management has proposed a new plan to cut Yahoo’s workforce by 75 percent, replace Mayer with a CEO focused on operations, and bring in a strategic partner to help Yahoo navigate tax issues about its Asian assets.

Yahoo announced last week that it was dropping plans to spin off its Alibaba shares due to possible tax risk and would explore a spinoff of its core internet business instead. Such a plan would take over a year to complete. Mayer said she would announce a more detailed organisation plan during the fourth quarter earnings call in January. Yahoo declined to comment further.

Categories:

Internet

Companies:

Yahoo,  Alibaba

Regions:

Global

Tags:

Staff, Portals / social media, Internet Access, Corporate strategy, M&A buyouts & divestments, Officers & directors

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