Yahoo! stock slips as new chief mulls strategy

Yahoo! stock price slid Thursday on word that freshly-appointed chief Marissa Mayer could overhaul the struggling Internet pioneer's strategy to regain its faded glory.

Mayer is re-evaluating Yahoo's plans, including a promise that billions of dollars from the sale of part of its stake in Alibaba Group in China would be channeled to stockholders, probably by buying back shares, according to paperwork filed with the US Securities and Exchange Commission.

"Ms Mayer is engaging in a review of the company's business strategy," Yahoo! said in the filing.

The review may lead to changes to "previously announced plans for returning to shareholders substantially all of the after-tax cash proceeds of the initial share repurchase" under the terms of a deal inked with Alibaba in May, according to the SEC paperwork.

"In short, Mayer may keep the cash to bolster the books or she may use it for deals or other purposes," Jon Ogg wrote in a blog post at investment website 24/7 Wall St.

"This is how a new CEO can manage to irk shareholders who are wanting some payback for their patience."

Yahoo! shares dropped 3.56 percent to $15.44 in after-market trading.

In May, Yahoo! raided its archrival in its latest quest for resurrection, hiring Mayer when she was a key Google executive to start Tuesday as the struggling Internet pioneer's new chief.

Mayer -- one of Google's first employees -- is now arguably the most prominent woman in Silicon Valley and a rare female CEO at one of America's largest firms.

Yahoo! has been trying to reinvent itself as a "premier digital media" company since the once-flowering Internet search service found itself withering in Google's shadow.

As the company strived for a new identity, it saw an exodus of talent that commenced during a failed bid by technology giant Microsoft to buy Yahoo! four years ago for about $45 billion.

Yahoo! has been cutting jobs in a purge aimed at becoming a "smaller, nimbler, more profitable" company.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Philippines says notorious bomb-maker killed by rebels

    MANILA, Philippines (AP) — A Filipino bomb-maker who was one of the country's top terror suspects was killed by Muslim rebels who earlier signed a peace deal with the government, the Philippine military said Wednesday. …

  • Philippines, Japan coast guards hold anti-piracy drills
    Philippines, Japan coast guards hold anti-piracy drills

    Philippine and Japanese coast guard teams staged an anti-piracy drill on Wednesday, featuring the storming of a cargo vessel after a mock hijack, in a show of maritime cooperation between the two nations amid rising tension in Asian waters. Both nations face a challenge from China's growing assertiveness over territorial claims in the South China Sea and the East China Sea, where it uses coast guard and fishing vessels to press into disputed areas. Wednesday's drill was the first held by …

  • Fight fans sue Pacquiao over injury
    Fight fans sue Pacquiao over injury

    Two Nevada men filed a class-action lawsuit against Manny Pacquiao, seeking millions in damages because they say he fraudulently concealed a shoulder injury before his defeat to Floyd Mayweather. It is just the latest fallout from Mayweather's victory in Las Vegas on Saturday in a unanimous decision, with Pacquiao saying afterwards that the shoulder complaint hampered his performance in the welterweight world title showdown. The plaintiffs argue that by failing to go public with the injury …

  • Noy leaves for US
    Noy leaves for US

    President Aquino leaves today for the United States to begin his three-day North American trip that will culminate in a state visit to Canada. The President departs at 8 a.m. on a chartered Philippines Airlines flight to Chicago for a one-day working visit. From Chicago, the President will proceed to Canada where he and Prime Minister Stephen Harper will witness the signing of bilateral agreements on labor cooperation, development assistance and infrastructure development. Canada is home to …

  • China accuses Phl of violating South China Sea Code
    China accuses Phl of violating South China Sea Code

    China has accused the Philippines of violating a 13-year-old informal code of conduct in the South China Sea with its building work on disputed islets, firing back again after repeated criticism of China’s own construction work. China and the 10-member Association of Southeast Asian Nations (ASEAN) signed an agreement in 2002 to refrain from occupying uninhabited reefs and shoals in the sea, and from building new structures that would complicate disputes. In a statement released just before …

  • Noul to bring stormy weather to central, northern Luzon
    Noul to bring stormy weather to central, northern Luzon

    Tropical storm  Noul  (international name) will bring stormy weather to the eastern section of Central and Northern Luzon this weekend, as it slightly gained strength and moved westward toward the Philippine area of responsibility yesterday. Rene Paciente, Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) senior weather forecaster, said the eastern section of Central and Northern Luzon, including Aurora, Isabela and Cagayan, may experience rains with gusty …

  • House asked to allocate P500-M legal aid for OFWs
    House asked to allocate P500-M legal aid for OFWs

    The House of Representatives was asked yesterday to appropriate P500 million for legal assistance for distressed overseas Filipino workers (OFWs). Reprieved death convict Mary Jane Veloso mirrors the tragedy of many OFWs in search of better job opportunities abroad “who become victims of human and drug trafficking and other forms of exploitation,” according to Bill 5704 that the seven-member Makabayan bloc of lawmakers had filed. The lawmakers said Veloso’s family claims that they were not …

  • World’s best place to be a mom: Norway is tops; Phl 105th
    World’s best place to be a mom: Norway is tops; Phl 105th

    Norway ranks as the world’s best place to be a mother, well ahead of the United States, which dropped to the 33rd spot in the annual scorecard released by Save the Children on Monday. Somalia is the worst place, just below the Democratic Republic of Congo and the Central African Republic. The Philippines placed 105th out of 179 countries, but the Save the Children report, which profiled Metro Manila among other cities, said that the National Capital Region has done better than most megacities …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options