The report revealed that Yahoo! A social networking site sells its assets to Luma Partners LLC. Terence Kawaja, chief executive officer of Luma Partners LLC, talks with Yahoo! Inc. under new CEO Scott Thompson over acquisitions and asset sales.
Yahoo is one of the Web’s largest content companies out of Google and Facebook that are stand with it in the competition.
Now it is time of shareholders to perform in an active way in form of company position. The entry of new CEO, Scott Thompson, looks uninspired. Before him, board had taken a decision to hire Carol Bartz who played a worse role as CEO that harms the company position. Although she came from software company Autodesk, but proved unqualified to run it. That’s why Yahoo is left back from its Rivals in the race.
Having a background in the online-payments industry Mr. Thompson hasn’t run a public company. So it is a challenge for him to take shareholders in his favour and make believe that he is the person who is able to put Yahoo back on track.
Beside head of Company, Yahoo has another problem regarding cost control. Reducing its work force up to 20% to 13,700 since 2006, the net revenue is flat over the period.
On other side, measure by eMarketer, Facebook generates roughly the same revenue as Yahoo with a quarter as many employees.
While Yahoo has not need of cash, but the decision to sell a minority stake to private-equity firms shows a big challenge for company to convince long-suffering Yahoo investors to believe in a turnaround rather than a takeover.
However negotiations over the sale of Yahoo’s valuable stakes in Alibaba Group Holding and Yahoo Japan are set to continue after Mr. Thompson’s appointment is made.
The chances are made that if Yahoo can get attractive prices with tax-efficiently, it could rise up the value of the share price. But to do it has made a long sense.
Moreover the main issue is of CEO appointment that deals with Yahoo’s core business.
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