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Thursday, 3 December 2015

Where is Yahoo! headed?

Is Yahoo! Inc a business with a future? Founded by David Filo and Jerry Yang in 1994 when the internet was really kicking off; the question is, are they going to survive?


Current CEO Marissa Mayer is considering selling out of the internet business to concentrate on its investment in Chinese technology giant Alibaba. The two major assets of Yahoo! are the Alibaba stake and Yahoo Japan with the 15% in Alibaba valued around $32 billion USD and 35% stake in Yahoo Japan valued around $8.5 billion USD.

Following a line of short-term CEOs, Mayer is feeling the pressure to stem the bleeding and arrest the flow of top executives leaving the corporation. Despite the Asian assets performing well, the rest of the business seems to be sinking after being a leading internet business.

Whilst remaining a big deal, the search engine is losing ground to rival Google although the email and news functions still drive people to the site allowing advertising to remain a cash cow for the business. Is this the end of Yahoo! as we know it?

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