20 February, 2016, USA: Yahoo, the company that has set a benchmark in the online sector and actually explained the world what online media is all about, has been put under pressure by the impatient investors. On Friday, steps were taken by the company to handle the possible sale of parts of the struggling Internet company.
Yahoo shares jumped after the company announced its board has formed a committee of independent directors to explore strategic alternatives, and that it has hired investment banks and a law firm to run the process, reports Reuters.
However, sources close to the issue revealed that the company’s advisors have been winding up for sale and the core team is working on the same. Though the company had been thinking on the same line from past three years, but efforts of CEO Marissa Mayer had kept the company’s hope alive. In order to turn around Yahoo’s declining profitability, she particularly focused on mobile apps to uplift the company’s advertising revenue. But this time fortune didn’t favour the brave and despite of her efforts the profit graph kept declining since the day she took the charge in 2012. Starboard, which owns about 0.75 percent of Yahoo, has been pushing for changes since 2014, asking it to separate its Asian assets and sell the core business.
Yahoo’s committee of independent directors has engaged Goldman Sachs & Co Inc, J.P. Morgan and PJT Partners Inc as financial advisers, and Cravath, Swaine & Moore LLP as legal adviser, reports Reuters.