Adieu Yahoo!

Marissa Mayer’s Exit

Yahoo’s current CEO Marissa Mayer will not be a part of either of the two entities. Mayer has constantly defended her performance citing the increase in the stock price since she began heading the company. Over the past five years, Yahoo’s stock has nearly tripled in value. But, the increase is attributed mainly to the growth in the value of the Alibaba investment than in Yahoo’s core operations. The market had counted on Mayer turning around Yahoo, but while the company invested heavily in mobile applications and video, it was still not able to gain a bigger share in the digital advertising segment. Yahoo continued to see its share being acquired by Alphabet and Facebook instead. Despite a clear failure in performance, Mayer is expected to make $186 million through the sale on account of the stock she holds. It is a big price to pay for non-performance, and just goes on to show that it pays not to deliver in the Valley.

Yahoo’s stock is trading around its 52-week high levels of $48.46 with a market capitalization of $46.4 billion. It had fallen to a 52-week low of $35.05 in June last year.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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