Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Cloud
    • Cloud

    Yahoo, CEO Mayer Face Board Scrutiny This Week

    Written by

    Chris Preimesberger
    Published December 2, 2015
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Yahoo reportedly will be facing a few crucial days of reckoning Wednesday, Thursday and Friday of this week when its board of directors meets on the company’s Sunnyvale, Calif., campus.

      Three years and four months into CEO Marissa Meyer’s attempted turnaround of the pioneering Web services and Internet advertising giant, prospects for revenue improvement haven’t been satisfactory to stockholders as well as a reconstituted board that placed its hope in her when she took over in July 2012.

      Even though the company is profitable, revenue has been sliding for several years, and even with layoffs, project cancellations and other cost-cutting moves, the downward trend is continuing.

      Profitable, But Margins Thinning

      In the company’s most recent quarterly earnings report, Yahoo — which is still the world’s most commonly used home page — showed a profit of $76.3 million for the third fiscal quarter ended Sept. 30. Black ink is never bad, but on overall revenue of a $1 billion, the margins are thin and getting thinner.

      The Wall Street Journal reported late on Dec. 1 that its sources said that the board was expected to have some difficult topics on its meeting agendas, including a discussion around whether to spin off a major investment of more than $30 billion in shares of Alibaba Holding Group, or even more surprising, to find a buyer for its core business of Web properties.

      Those core assets include such central divisions as Yahoo Mail, the Tumblr blog franchise (which Yahoo bought for $1.1 billion in 2013 but hasn’t shown a profit), its’ news and sports sites — which employ high-salaried, high-visibility people such as Katie Couric and others — and several other departments. Each or all of them could attract buyers from private equity firms or media and telecom companies who could add the assets into their own set of services.

      It’s possible the board may discuss and/or enact both of those items. Yahoo declined to comment on the Journal report.

      Never Was Able to Win the Search War

      Yahoo’s original central problem was that its Web search technology was surpassed in speed and overall quality by Google 15 years ago and it’s never been able to catch up — despite a recent partnership with Microsoft to use its Bing search IP. Even though it predated Google by five years and Facebook by 10, Yahoo nonetheless has struggled for years to improve its advertising businesses in competition with the two other Web giants.

      Mayer came to Yahoo after a 13-year tenure at Google, where she played leadership roles in the development of Google Earth, Gmail and Google News, and is credited with helping create the company’s celebrated search page.

      Mayer’s main project in her turnaround strategy was to push mobile, video, native and social media ads — an initiative called Mavens introduced in 2014 — but it hasn’t been able to turn around the company’s revenue erosion. Yahoo, once all-powerful on the desktop, has suffered as desktop search and news ad sales overall are declining.

      Chris Preimesberger
      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.
      Linkedin Twitter

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.