Yahoo keeps Alibaba, spins off core business
WASHINGTON5 (AFP) – Yahoo flipped its reorganization plan Wednesday, announcing it would keep its stake in China’s Alibaba but spin off its core Internet business – creating new uncertainties for the struggling tech giant.
The new plan shelves one in the works to spin off Yahoo’s vast holdings in ex-commerce giant Alibaba – which could have exposed it to a huge tax bill – but the tech firm still intends to separate out its activities under the new structure.
The move could open the door to a sale of Yahoo’s core online operations – amid speculation the group may be headed for a break-up – but the company denied this was on the cards as it reaffirmed its confidence in chief executive Marissa Mayer’s ability to revive its fortunes.
Board chairman Maynard Webb said during a conference call that “there is no determination by the board to sell the company or any part of it,” and added that Yahoo is “tremendously undervalued.”
Asked on CNBC if the board retains full confidence in Mayer after her three years at the helm, Webb said: “Absolutely... I’ve never met anybody that works harder, that’s smarter, and cares more.”
“So we want to help her return this great company to an iconic place where it belongs,” Webb said.
When asked if Yahoo would entertain an offer to buy its online operations, Webb told CNBC that Yahoo’s board would have a fiduciary duty to consider it. But he told the New York Times that if a bid were to emerge, “it would probably be a lowball offer.” Among the best-known names on the Internet, Yahoo was one of the first companies that enabled users to find their way online, but it has lost its role as a leader. Here are key facts about Yahoo: Founded in 1994 by Stanford University students David Filo and Jerry Yang, Yahoo was created as a type of directory for the Internet.
It was originally called “Jerry and Dave’s Guide to the World Wide Web” and when the Yahoo name was agreed upon, its founders said in jest that it stood for “Yet Another Hierarchical Officious Oracle.”