Yahoo to run sale search

The board of Yahoo Inc is to discuss the potential sell-off of the beleaguered Internet company’s core business during a series of meetings this week, people briefed on the plans said on Tuesday.

As troubles continue to hound the company that has gone from being an Internet pioneer to a second-tier player, reports are circulating that Yahoo’s board is considering selling off its core Internet business and and showing Mayer the door. An earlier WSJ article said that an Alibaba spinoff would put the company’s focus “squarely on Yahoo’s core business” – despite its expanded online video offerings, such as its exclusive National Football League live-stream of a regular-season game, and original content along with its increased online video advertising plays. The telecom company already spent $4.4 billion in June on AOL. The potential bill dwarfs the estimated value of Yahoo’s operating business, which analysts peg at $2 billion to $4 billion, after subtracting the roughly $7 billion that the company has in the bank.

Growing concerns about the lack of progress by Marissa Mayer the CEO in turning the company around and the recent exodus of top company executives has heightened the pressure on the board to look at her future and the alternatives to her attempted turnaround now entering its fourth year.

“There’s always a buyer out there”, said BGC Partners technology analyst Colin Gillis.

Yahoo! Inc. (NASDAQ:YHOO)’s Chief Executive Officer, Marissa Mayer has been making efforts to attract users towards the company’s products including Yahoo Mail and search.

Anyone who picks up Yahoo’s core business would inherit some acute problems. Most of the dollars, though, are flowing to rivals Google and Facebook.

Spokesmen for Alibaba and SoftBank Group, the biggest shareholder in Yahoo Japan, declined to comment.

Mayer drove the stock up to over $50 a share this time past year but the stock dropped nearly 35 percent.

According to a person familiar with the matter, activist investor Starboard Value LP is also disappointed in Yahoo’s performance under Mayer and has lost confidence in the CEO. Yahoo purchased a similar company, BrightRoll, last year.

Yahoo runs several web properties including Yahoo Finance, blogging platform Tumblr and fashion site Polyvore.

While traders applauded the prospect of the spin off, Mayer on the company’s third quarter earnings call in October suggested the move wouldn’t come without a fight. Should Yahoo place itself for sale, other tech companies and private equities are likely to scramble to acquire its internet assets.