Marissa Mayer’s Last Salvo To Save Yahoo! Inc. (YHOO)?
Yahoo! Inc. (NASDAQ:YHOO) has reportedly hired consulting firm, McKinsey & Co, to advise it on how to go about the reorganization of its core business. The consulting firm according to sources will help the search giant decide which units to shut down, which to sell and those to pay more attention to. McKinsey deployment is part of an effort by CEO Marissa Mayer to turn around the company’s prospects in a turnaround she’s been trying for three years.
Concerns over Mayer’s Abilities
The hiring however comes as a surprise as Mayer has been at the helm for almost four years. The hiring of McKinsey is an act that many believe should have done 90 days into the reign and not after four years. The move could be interpreted in some quarters as a lack of ideas by the highly experienced executive. Up until now, her efforts have amounted to little or no success with investors starting to become wary of her ability to engineer a successful turnaround.
Mayer’s reign has been marred by a string of strategies all intended to steer the company in the right direction. Some have born fruits but some have ended up in disappointments. Before her appointment, Yahoo! Inc. (NASDAQ:YHOO)’s EBITDA stood at $1.5 billion, now it is down to $630 million, indicative of a poor run in the recent past.
Yahoo’s headcount has ballooned ever since Mayer took over. Once she took over she embarked on a hiring spree all in the effort of surrounding herself with executives she believed will play a key role in the restructuring process. A change of tune in the recent past has seen the executive claim most of them did not have the skills or passion to stick with Yahoo! Inc. (NASDAQ:YHOO).
A look at all the executives that have left the company in the recent past, all but signals things are not right. The remaining bunch has been asked to give a pledge of their commitment to stay with the company. A proposed move to cut the headcount further arouses doubts about the company’s long term prospects.
It’s hard to believe that McKinsey will turn the page on Yahoo’s poor run after seeing all the tries in the past amount to nothing. The hiring of the consulting firm could as well elicit doubts about Mayer’s ability to turn around Yahoo! Inc. (NASDAQ:YHOO)’s prospects.
Latest posts by Viraj Shah (see all)
- Tesla Motors Inc (NASDAQ:TSLA)’s Elon Musk Is Going After Semi Truck Industry - November 17, 2017 04:37 AM PST
- Tesla Motors Inc (NASDAQ:TSLA) Is Not “Hotbed for Racist Behavior” - November 15, 2017 06:58 AM PST
- Nikola Tesla and Tesla Motors Inc (TSLA) – The Past & Future of the World You Cannot Ignore- Part 1 - May 15, 2017 05:11 AM PST