October 20, 2014
Yahoo CEO Marissa Mayer has brought a lot of change to the company in the two years she has been in charge.
She will continue her trend of change by announcing a “new plan” for the company this week — the same week Yahoo is to reveal its third-quarter earnings.
After posting its results Tuesday, Mayer is expected to announce new cost-cutting efforts as well as divulge new details about how the company is evaluating possible acquisitions, a source “who was briefed on the plan” told the Wall Street Journal.
The sources said Mayer is contemplating the purchase of one or more large technology start-ups using funds from the $5.8 billion it made from the initial public offering of Alibaba Group Holding Ltd.
According to the report a large acquisition would help Mayer to create sizeable new streams of revenue for the search engine firm — something that is sorely needed after a decline in sales in four out of the past five quarters.
The move by Mayer is not just about announcing change, however, it is also an effort to “fend off a challenge” by activist investor Starboard Value LP, according to the WSJ.
Investors, the report said, are becoming impatient with Mayer’s inability, thus far, to drive up revenues.