December 3, 2015
Members Expected to Talk of Selling Off Internet Business
Yahoo stock is becoming a somewhat hot commodity as board members are slated to begin a long meeting to discuss the future.
Reports Wednesday showed the company’s shares had jumped about six percent. The increase coincided with news the board will meet for approximately three days to discuss business, including the potential sale of the Internet division.
The news comes at a time when Yahoo’s future looks somewhat murky with questions over if CEO Marissa Mayer is the right person for the position and if Yahoo should sell off its shares in eCommerce company Alibaba Holding Group Ltd. Reuters reported a source familiar to the situation has explained the board will examine the possibility of selling the Internet business during the three-day board meeting.
The sale of the Internet side — which would include the Yahoo and Tumblr websites among other components — is estimated to bring in between $2 billion and $8 billion.
However, some analysts are questioning what the proper move will be for Yahoo. Ivan Feinseth, chief investment officer of Tigress Financial Partners, told CNBC the sale of Yahoo’s main growth operations — the mobile, video, native advertising and social media (Mavens) units — would leave nothing but the Internet search business and “there would be nothing left of the company.”
“I don’t know why anybody would want to buy a line of business that’s in decline and has stiff competition from Google and Microsoft,” Feinseth said.
W. Brice McVicar is a staff writer for SiteProNews.