A couple of years ago, Yahoo was one the most famous companies in the Internet business. This company has released one of the most used email services and also had a successful messaging client. Unfortunately, the years have passed and now they are forced to take some important decisions to remain in this business.
It looks like the company will spin off its core business after failing to convince people to stay and use their products. Yahoo has declared that they have dropped a plan to spin off its 30 billion dollars stake in Alibaba, the Chinese e-commerce company, but, instead, it will spin off all of its other assets into a new company. Among these assets are included the Yahoo Japan stake.
So, after several days of meetings, Yahoo’s board has decided to go for a new plan, spinning off the company’s core business and its stake in Yahoo Japan into a separate, publicly traded company. “Informed by our intimate familiarity with Yahoo’s unique circumstances, the Board remains committed to accomplishing the significant business purposes and shareholder benefits that can be realized by separating the Alibaba stake from the rest of Yahoo,” has declared Chairman Maynard Webb. “To achieve this, we will now focus our efforts on the reverse spin off plan,” she continued.
So, this reverse spin of the core business could probably save shareholders a lot of money, billions of dollars actually in taxes. Unfortunately, it will take more than a year to execute and perform, has declared CEO Marissa Mayer during a conference call. This is not good news for Yahoo, a company that has been founded in 1995 by Jerry Yang and David Filo, Stanford University students at that time. Yahoo is probably the last independent titan of the Internet. Other companies like AOL, Netscape, Napster have been companies which introduced a lot of people with the Internet. To be added that AOL has been bought by Verizon.
“A separation from our Alibaba stake, via the reverse spin, will provide more transparency into the value of Yahoo’s business,” has declared Chief Executive Marissa Mayer.