Who is Responsible for Yahoo Current Dire Situation - Reckless Acquisition or Lack of Leadership or Confidence around Alibaba & Yahoo Japan Stake


Yahoo - is One of the pioneer of Internet during Internet era of 1995 onwards which acted as driving force of innovation. The revolutionary email and chat solution from Yahoo attracted millions of active users on daily basis and their equity price skyrocketed during Internet bubble. The higher price point enabled Yahoo to acquire multiple to mid range companies through Share swap mechanism in order to grow their business. The Internet bubble burst during 2001-2003 and loose coupled integration of acquired organization by Yahoo landed yahoo in a situation where they failed to monetize the properties.

The entry of Google by 2006 - 2007 in big way also attracted many organization towards Google for search engine due to their fast and clean business model whereas Yahoo struggled to maintain their falling equity price in flagging revenue with near to zero growth.

This led Yahoo to fire multiple CEO's and landed in paying Millions of $ in Golden parachute  package and every CEO tried two things; Acquiring new companies and taking huge charges for firing thousand of resources with an commitment to stakeholders that they will be on the path of growth soon. Unfortunately nothing happened. Most interesting in each and every investor conference call, they touched Alibaba and Yahoo Japan operation which is the Jewel in Yahoo Crown to deviate the shareholders. During Alibaba IPO, 

Yahoo made handsome capital gain and distributed it among shareholders to keep them happy rather than introspecting about their product line and subsequently investing in Research and Development for the betterment of Future product roadmap. They acquired Tumblr which is a blogging site with an intention to attract more users and paid $1.1 Bn but it seems that they will close that too in next few years.

Most interesting when Microsoft made an acquisition offer, they felt that the offer is undervalued and rejected the offer and I am sure that all must be regretting today for shooting down the offer. In my point of view, Yahoo should get out of the Confidence factor that they have multi billion $ cash hoard in the form of equity in Yahoo Japan and Alibaba and focus on their product line in serious manner. As they are open for sale but what is the use of being tagged as looser in Technology world when they were the pioneer of the segment. Cheer up Yahoo team and come up with revolutionary product line.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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