I have a small position in Yahoo- thankfully it represents past gains, making the position virtually free- in my portfolios. I say thankfully as it appears that Ms. Mayer is pulling back on previous plans to return cash to shareholders and instead will pursue an empire building strategy (at least in my opinion).
The below is from the recently released 8-K.
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In some investor's opinion, Ms. Mayer may be attempting to build a baby-Google. If I remember correctly, Microsoft and Yahoo tried this strategy repeatedly in the past, throwing good money after bad. Neither has been able to crack Google's position as the top search engine. Unless Ms. Mayer is looking to completely re-engineer Yahoo in a new, disruptive direction, instead of fighting a David vs. Goliath battle against her former employer, I may have to rethink the position.
...... Just an update. I had a problem with my Yahoo email account and was asked to contact customer service. I actually had to go through Google to find out how to contact Yahoo's customer service. I hope the board gave her plenty of time to fix Yahoo;s problems.
The below is from the recently released 8-K.
---------------------------------------------------------------------------------------------------------
New Chief
Executive Officer and Review of Business Strategy
On
July 17, 2012, Marissa Mayer became the Chief Executive Officer
and a member of the Board of Directors of Yahoo! Inc. (the “Company”).
As reported in our Form 10-Q for the quarter ended June 30, 2012 filed
today with the Securities and Exchange Commission, Ms. Mayer is engaging
in a review of
the Company’s business strategy to enhance long term shareholder value.
As part of that review, Ms. Mayer intends to review with the Board of
Directors, among other things, the Company’s growth and acquisition
strategy, the
restructuring plan we began implementing in the second quarter of 2012,
and the Company’s cash position and planned capital allocation strategy.
This review process may lead to a reevaluation of, or changes to, our
current plans, including our
restructuring plan, our share repurchase program, and our previously
announced plans for returning to shareholders substantially all of the
after tax cash proceeds of the initial share repurchase under the Share
Repurchase and Preference Share Sale
Agreement we entered into on May 20, 2012 with Alibaba Group Holding
Limited.
In some investor's opinion, Ms. Mayer may be attempting to build a baby-Google. If I remember correctly, Microsoft and Yahoo tried this strategy repeatedly in the past, throwing good money after bad. Neither has been able to crack Google's position as the top search engine. Unless Ms. Mayer is looking to completely re-engineer Yahoo in a new, disruptive direction, instead of fighting a David vs. Goliath battle against her former employer, I may have to rethink the position.
...... Just an update. I had a problem with my Yahoo email account and was asked to contact customer service. I actually had to go through Google to find out how to contact Yahoo's customer service. I hope the board gave her plenty of time to fix Yahoo;s problems.
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