Yahoo formed a board of independent consultants for complete restructuring

If immediately after the arrival of Marissa Mayer at Yahoo, many investors and analysts predicted profit growth and positive changes, now their attitude has changed. Some of the investors directly accuse Mariss Meier of “burning out” more than $ 3 billion in recent years. The head of Yahoo has repeatedly spent unreasonably large amounts of money on non-obvious things — for example, on corporate employees for $ 7 million. As a result, for 3.5 years, under the leadership of Marissa, the company's profit dropped significantly as costs increased.

Not so long ago, Yahoo officially announced plans to reduce 15% of employees and close several units as part of restructuring in order to return the company's profitability. But this was not enough - now the board of directors has hired a board of consultants to study potential segments of the company's development. Goldman Sachs, JP Morgan and PJT Partners were hired as independent financial advisors, and Cravath, Swaine & Moore were selected as legal advisors.
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“The separation of Alibaba’s shares from Yahoo’s current business will have an important impact on the value of the company for our owners. Everyone at Yahoo wants to bring a landmark company to greatness, ” said Marissa Mayer in an open statement.

For the fourth quarter of 2015, Yahoo reported a loss of $ 4.43 billion, which was a record in the history of the company. The main reason for such losses was the write-off of many assets, including Tumblr , absorbed for $ 1 billion in 2013. In addition, the company's revenues decreased from $ 1.27 billion to $ 1.25 billion year on year.

The appointed committee can evaluate all these indicators and name the best option for the company and its shareholders. But cardinal solutions may appear among the solutions - Yahoo may sell off some of the Internet divisions, which will save several hundred million dollars this year.

After the publication of a statement about the formation of a separate committee to assess the prospects for the company, Yahoo shares rose 2.26% to $ 30.09. Analysts also believe that Yahoo is leaning toward selling its business, rather than restructuring, which likewise influenced the increase in the value of shares.

It is noteworthy that this decision was taken by Marissa Meier against the background of rumors about a possible change of head of Yahoo, so there could be a simple attempt to remain at the head of the company, despite previous bad decisions and investor discontent.