Yahoo! Inc. (NASDAQ:YHOO) is all set to release it turnaround plan this week while doing everything possible to fend off investor pressure. The Internet company is under direct pressure from Starboard Value LP to rejuvenate its ailing online business. The CEO is likely to highlight potential acquisition opportunities at the event.
Yahoo is under immense pressure from activist investor Starboard Value LP, which called company’s operating structure “bloated” last month. The internet company is facing pressure to cash on its Asian assets to offer better returns to its shareholders. Earlier, Starboard suggested the internet firm to monetize Yahoo Japan and its remaining stakes in Alibaba Group Holding Ltd (NYSE:BABA).
In addition to its cost cutting efforts, Marissa Mayer, Yahoo! Inc. (NASDAQ:YHOO), is likely to announce some potential acquisition targets of the company with its remaining $5.8 billion cash pile received from the IPO of Alibaba Group Holding Ltd (NYSE:BABA). The acquisitions are likely to help revive the revenue stream of the company, which has struggled to improve revenues in at least four out of its last five quarters.
The Internet firm is trying to streamline its business and it announced reduction in its operations at Bangalore, India, the largest engineering facility owned by Yahoo outside its California headquarters. Further, the company is closing off its operations in Jordon. In its efforts to cut costs, the company is likely to close its offshore offices, increase layoffs, and transfer employees to its headquarters.
Earlier, Starboard Value LP suggested Marissa Mayer to merge the company with AOL, Inc. (NYSE:AOL) and according to the investment firm, the merger would help the combined entity to save up to $1 billion in synergies. The firm even suggested a separate tax structure to cut down tax costs from the receivables of Alibaba Group Holding Ltd (NYSE:BABA)’s IPO offering.
This article has been written by Prakash Pandey.