The celebrated Yahoo’s chief executive Marissa Mayer is finding it difficult to generate support to continue her term. In a report which might be ahead of its time but is inevitable Marissa is not able to turn around the company as the board expected from her. The company’s stock has fallen almost 35 % in last one year and investors are not very optimistic with the leader’s initiatives. According to a hedge fund analyst Eric Jackson, This is like an ’emperor has no clothes’ situation. The company and the shareholders would be better served with her leaving.”
There have been a strong voice to fire Marissa from the board and Sun Trust Analyst Robert Peck even wrote a letter to the shareholders to do the “necessary” before it is too late. The company has not been able to make inroads to a profitable path accept for the Alibaba IPO which was a money spin off and made the company rich . Yahoo has a $30 billion stake of Alibaba.
Marissa’s rating has also decrease rapidly in recent times from 99% to 73% as reported by Employer review website glassdoor. This comes at a time when lot of senior executives left yahoo in last one year.
Marissa seems to be positive though and believe that company is in right direction and would turn around in near future . In a statement issued to shareholders she said “I have very aggressive expectations for Yahoo’s core business,” she said. “We have the right talent, the right strategy, and the right assets to drive long-term sustainable growth for our investors”.
The biggest cause of worry for the company is steep fall in Yahoo’s revenue from its core products . The company reported a 8% loss in the revenues other than adverting money that it is receiving.This is the steepest fall in Yahoo’s revenue in recent times. The company is not very positive in near future and there is belif that the revenue may decrease more to 20. This is a big blow to Mayer’s reputation as she came from an astounding background , google and was touted to be the next big thing in the Tech Circuit.
Marissa did tried her best to change the fortunes of the company by acquiring and investing in multiple startups like Flickr and even hiring celebrity News anchor Katie Couric to handle online video reports. She also acquired blogging service Tumblr for $1.1 but these moves are yet to pay her the dividends of the costly efforts.
It will be interesting to see in which direction the story goes as Yahoo’s previous Chief Executives have either been dumped or resigned .