New
brooms sweep differently. Yahoo's newly appointed CEO Marissa Mayer is planning
to make some changes to the way shareholders in the company are rewarded, it
said in a filing to the Securities Exchange Commission.
Mayer's
intention in making the alterations is to enhance shareholder value but
investors responded by selling the stock, which fell 4.8 percent in
after-market trades.
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Investors Trade YHOO Now, Get Free Trend
Analysis
The
new CEO will look at several parameters while rewarding shareholders, such as
Yahoo's acquisition strategy, capital allocation strategy, its cash position as
also its previously announced restructuring plan.
The
restructuring plan may well undergo a change in light of this development and
also the company’s share buy-back programme. Yahoo said that it may also lead
the company to shelve its idea of returning the post-tax proceeds from the
Alibaba deal which it had struck in May.
Mayer,
a former Google executive, is the fifth boss the company has had in five years
as the company struggles to gain an identity for itself in the fast evolving
Internet world, where old rival Google has taken giant strides ahead while
newer ones like Facebook are rewriting the rules of the game.
Yahoo
has been caught in a `no-man's land' zone with no distinguishing service
offering to separate it from many others on the Internet.
When
it was first launched it had a robust search engine and along with Hotmail,
also had a vibrant web-based mail platform. However, while it was never able to
supplant Microsoft's Hotmail, in the search area it was quickly overtaken by
Google.
Mayer,
who took charge barely three weeks back, has the mandate to revive the
company's struggling fortunes and to give it a specific identity in the
industry.
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She
started on the spring cleaning right away by saying that she would examine the
entire company's operations and the recent filing seems that she may be trying
to mould it after her previous company, Google Inc(NASDAQ:GOOG).
The
company had been facing severe competition from Google Inc(NASDAQ:GOOG) in the
search engine market.
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