Buyout Looms Over Yahoo

It's no surprise that increasingly there have been talks of spin-offs, restructurings, and now an outright sale of Yahoo. CEO Marissa Mayer is constantly criticized for her managerial decisions at the company, and despite having four years to implement various aspects of her plan has not seen much, if any, success.

Yahoo! Inc. will begin approaching potential corporate and private equity buyers as soon as Monday as the Web company seeks bidders for its core business, according to people familiar with the process.

Companies such as Verizon Communications Inc., Comcast Corp. and AT&T Inc. are among interested parties, as well as buyout firms including Bain Capital Partners, KKR & Co. and TPG, the people said, asking not to be identified as the situation isn't public. The potential first-round bids for the business are unlikely to come in for at least a month, they said.

I'm not a big fan of the direction Mayer has taken the company, and I would like to think that there remains some valuable assets that can constitute a healthy business in the future-- my question is, what would you do differently from Mayer in order to keep Yahoo as an internet giant?

Comments (24)

Dec 31, 1969

I think its a bit premature to start talking a Yahoo carve out. While Marissa Mayer's days may be numbered there is still fight left in the company. What is likely to happen is Yahoo either finds growth within the context of Alibaba and its other acquisitions or face a continued devaluation which will lead to it facing mouth licking PE wolves. There is still a lot of great talent there so in theory there is the makings of a comeback.

Does anyone else think one of Yahoo's biggest woes is Marrissa Mayer? I'm a big fan of companies that source its leaders from within. More times than not this works better than taking a transplant from elsewhere and sticking them at the head of a sinking ship. While Mayer came in swinging; making a few great acquisitions, the writing was always on the wall. She never fully understood Yahoo's core business - something she would have known had she risen through the ranks or at least put some years in before being head. This, some bad acquisitions/pivots, and high expectations make for a difficult battle and disgruntled investors.

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Dec 31, 1969

i was yahooing like a boss the other day and came across this search place called googie or goggles or something have u heard of it?

Dec 31, 1969

i've got a new search engine in the works:

http://thisoldhouse.typepad.com/.a/6a00d8341cae155...
going to send google into the dustbin of history. wipe it off the map, so to speak.

Dec 31, 1969

Yahoo has a CEO?

Dec 31, 1969

Layoffs come and go, I wouldn't raise any flags about it. But I could be wrong.

"It's outrageous, egregious, preposterous. "

Dec 31, 1969

i love drinkin yoohoo that shit delish

Dec 31, 1969

Given the liquidity of the company, it's a strange move. Usually PIPEs are done with illiquid stocks.

This may actually work out for shareholders that are willing to stick with the company because I believe that it is the first step towards a take private that will ultimately occur at a premium to today's share price.

Dec 31, 1969

Personally, I think that it will be better if Yahoo! gets taken by a PE firm like KKR (more objective). With Jerry Yang still on the board, the development of Yahoo! will be stalled (like how he rejected Microsoft's offer). It's such a pity to see a solid company go down.

Dec 31, 1969

Is Moelis on this?

Dec 31, 1969

They were working with Allen & Co as of a couple of months ago.

Dec 31, 1969

This is what will happen when all you fucktards who round your gpa get caught. Beware bitches.

Dec 31, 1969
Newflyer:

This is what will happen when all you fucktards who round your gpa get caught. Beware bitches.

Oh yes, this is EXACTLY AND ENTIRELY like that.

Dec 31, 1969

A professor at Yale SOM made a really good point about this, basically saying: Even if this doesn't directly speak to his qualifications, how can he possibly expect to enforce any kind of compliance or integrity policy throughout the organization from here on out. It's all about tone from the top, and Yahoo has a bad one with Scott Thompson at the helm.

Dec 31, 1969
Boothorbust:

A professor at Yale SOM made a really good point about this, basically saying: Even if this doesn't directly speak to his qualifications, how can he possibly expect to enforce any kind of compliance or integrity policy throughout the organization from here on out. It's all about tone from the top, and Yahoo has a bad one with Scott Thompson at the helm.

Just imagine him looking down at the engineers, when he's only gone to this introductory course to computer science. It amazes me how these things can slip by...

The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.

Dec 31, 1969

I know people embellish their resumes, but that is just straight up lying.

Dec 31, 1969

It was stupid to lie on his resume, but it presumably happened quite a long time ago and he is an absolute idiot to have not covered his tracks.

Dec 31, 1969

And he is probably not the only one http://www.readwriteweb.com/archives/10-executives...

Dec 31, 1969
junky_munky:

And he is probably not the only one http://www.readwriteweb.com/archives/10-executives...

Holyshit, I hadn't seen this before.

The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.

Dec 31, 1969
Comment
Dec 31, 1969