Yahoo Considers Options for Japanese Division
May 25, 2015
Despite a series of changes since former Googler Marissa Mayer took over at Yahoo, the search-and-entertainment company still struggles to find its footing in a tech landscape that shifted around it long ago. Bloomberg Business wonders whether the Yahoo’s next steps in Japan will set it on a sturdier path in, “Yahoo Weighs Options for Japan Stake; Sales Miss Estimates.” Writer Brian Womack reports that Mayer plans to make the most of her company’s Japanese assets. He posits:
“By telling investors she’s looking at options for Yahoo Japan, Mayer may be seeking to buy herself more time to jump-start growth at the company she’s been working to turn around for almost three years. Unless she can expand sales, investors may eventually lose patience with the strategy and question her leadership. Some analysts speculated earlier this year that Yahoo could become a takeover target for a larger Internet company after it spins off the Alibaba stake.
“Yahoo’s share of the U.S. online display ad market may slide to 3.5 percent in 2017 from 5.5 percent last year, according to EMarketer Inc. Quarterly revenue growth has come in at less than 4 percent or negative since the end of 2012.”
The success of China’s largest e-commerce firm, and Yahoo asset, Alibaba is responsible for much of the company’s recent growth, such as it is, but that boost will only last so long. Womack reports there has been investor pressure to spin off Yahoo’ Japanese division, but apparently Mayer prefers to consider a range of options. Will Yahoo find salvation in the land of the rising sun?
Cynthia Murrell, May 25, 2015