This is interesting news I just saw 10 mins
ago.
Yahoo needed to make the sale to free
capital for shareholder reward and to buy it support for a review of its
strategies.
In recent years, Yahoo’s profits have
slumped because of competition from Google and Facebook in the search and
networking market, sparking investor discontent. Yahoo therefore needs to
concentrate on rallying up investor support (or least so there’s no great
barriers to decisions made) and refocusing company strategies to turn the
company around. The current sale of its stakes in Alibaba is just 1 step of
its 3 step strategy to help it refocus on core competencies:
1.
Identify
core competencies. In Yahoo’s case, it will be its foothold in China (unlike
Google and Yahoo), and its media.
2.
Sell
stakes to free capital for shareholder reward and improving relationships with
Alibaba.
3.
Focus resources on improving
core competency offering with the aim of increasing market share in these
segments.
Based on
the above, we may expect to see more Yahoo news! and media activity, especially
in China. How about Yahoo China pps tv for a thought?
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