Yahoo, the American multinational internet corporation that started out as a Jerry’s guide to the World Wide Web in 1994 by Jerry Yang and David Filo was once a stronghold in the internet, known as the search engine of choice for web users in 1998. The company’s rapid decline was attributed to Google taking over the web in the 2000’s, where Yahoo experienced key role changes, with 4 CEO’s in a 5 year span highlighted by numerous layoffs, including 2,000 job cuts in 2012.
Despite these struggles, Yahoo’s market value has doubled during the tenure of their latest CEO, Marissa Mayer – a former Google executive. Underlying these gains are several issues that show that Yahoo may not be gaining much, or anything at all. The market growth experienced by the company is not attributed to the company’s value, but from the gains of part – owned companies Alibaba Group and Yahoo Japan.
Alibaba Group’s market value stands at $153 billion. Yahoo in itself is worth $39 billion, with a 24% share of Alibaba. Subtracting these values, Yahoo’s value is at a measly $2 billion, less than the value of Groupon, Zynga or AOL.
Is a market demise looming ahead for Yahoo? If the figures are correct, then Yahoo is a hopeless case.
Read more about this on the Age website.
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