The finale to Yahoo! ongoing saga came to an end today when it was announced that Yahoo! has sold itself to Verizon Communications for a mere $4.83 billion. This is significantly a lot less than the $44 billion Microsoft had been willing to pay in 2008 when their offer was rejected by then CEO, Jerry Yang and company.
Fast forward to 2016 and Yahoo! investors have been waiting patiently for this sale to go through for a long time now and instead of being rewarded with a 20-40 percent pop in share price, it actually went down. The share price closed today at $38.32, down $1.06 from last Friday’s closing price of $39.38
Was it a good deal for Yahoo!’s investors as we now know that the core business is worth $4.83 billion? Time will tell, but at least Marissa Mayer didn’t give away the $7.7 billion of lump sum of cash on hand or the intellectual patents as part of the Verizon sale. We can safely say that Marissa Mayer is not completely inept despite many investors’ negative sentiments about her.
However, with no previous CEO experience running a large public company, Marrisa Mayer might have been over her head. In her tenure she made a lot of mistakes and acquisitions that proved to be a waste of shareholders’ money. One example is Tumblr that she bought for over a $1 billion has been a complete failure where the value had to been written down by more than 50 percent.
In her defense she points to the uptick in mobile and the growth that Yahoo! is seeing from it as her success in running Yahoo! We beg to differ because it was not so much as her strategy that she implemented it was more of a the natural shift to mobile by the general populace and industry. Every company from Facebook to Amazon have seen the same transition to mobile as we are living in world where smartphone adoption continues to be on the rise.
Most Yahoo! shareholders are probably very upset at this moment and probably would like Marc Benioff, CEO of Salesforce, who once called Marissa Mayer in an interview with Bloomberg as “completely magical” to take her far far away.
So the question we pose, “Is Marissa Mayer to blame for this debacle?”
We love to hear from you and what you think, take the poll and add your comments.