Yahoos Test

Written by The Financial Express | Updated: Oct 21 2014, 08:03am hrs
There were expectations of a flurry of activity at

Yahoo Inc after the Internet major made $5.8 billion from the Alibaba US IPO. But how exactly this is panning out now is a hint of investors mounting concern with Yahoos business strategy so far under CEO Marissa Mayer. Activist shareholder

Starboard Value LP, for the past one month, had stepped up pressure on the Yahoo board to cut the companys bloated cost structure, and, as per The Wall Street Journal, Mayer is likely to unveil a cost-cutting plan for the company when Yahoo issues its earnings call today. The company has already shut its Jordan office and is reducing strength at its Bangalore office, the largest outside its California headquarters.

Mayers two years at the helm so far have been marked by an expansionist strategy, most notably the $1.1 billion acquisition of bloghost Tumblr and the companys increased media offerings. Given that all such efforts have failed to rev up Yahoofour out of the last five quarters saw slipping revenues, with a 2.8% decline predicted for the latest oneit would be interesting to see what final shape Mayers acqui-hire strategy gets. Under Mayer, Yahoo had aggressively bought failing tech start-ups to hire their engineering teams. With the profits from the Alibaba stake-sale eroded by tax, her hands seem tied on continuing this. For the 39-year-old CEO, the time to pull Yahoo out of a terminal decline seems to be running out.