Boston, MA 10/14/2014 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer, tenure at the company is hanging by a threat after losing support from within and from outside as poor performance rounds up her tenure. Increased competition from Facebook Inc. (NASDAQ:FB) and Google Inc. (NASDAQ:GOOG) has been the biggest test for Yahoo on its push to achieve growth on digital advertising.
Acquisitions Debacle
Acquisitions that were believed could give the company a new lease of life in terms of growth have turned out to be a total disappointment with many of the opinion that cash might have been wasted altogether. Yahoo acquired Tumblr with a view of transforming it to compete hand in hand against YouTube. Any new developments on the acquisition have gone numb, and there are reports that Tumblr founder David Karp is not happy with Mayer’s plan for the division
Yahoo! Inc. (NASDAQ:YHOO) has already sold billions of dollars in Alibaba shares awaiting to see the next big thing that the company will do with the bolstered cash balance. The company was forced to initiate a lock-up of the remaining stakes in Alibaba Group Holding Ltd (NYSE:BABA) as further sales would only devalue the company in the short term. The entry of activist investor starboard Value is expected to be another acid test for Marissa Mayer as more fund managers continue to push for a breakup of the company.
Management Change
Mayer has moved with speed to safeguard her position in the company by pushing out people who are against her and surrounding herself with people who she believes will continue to support her plans and tenure. Last year she pushed out activist investor Dan Loeb and filed four empty slots with handpicked executives.
Mayer’s tenure at Yahoo! Inc. (NASDAQ:YHOO) hangs on the mercy of the company’s board, which may decide any time to call it quits on her turnaround strategy.
