TECHNOLOGY NEWS
August 10, 2012 12:00:00 AM
  Follow @ Twitter

Yahoo! stock price slid today on word that freshly-appointed chief Marissa Mayer could overhaul the struggling Internet pioneer's strategy to regain its faded glory.

Mayer is re-evaluating Yahoo's plans, including a promise that billions of dollars from the sale of part of its stake in Alibaba Group in China would be channeled to stockholders, probably by buying back shares, according to paperwork filed with the US Securities and Exchange Commission.

"Ms Mayer is engaging in a review of the company's business strategy," Yahoo! said in the filing.

The review may lead to changes to "previously announced plans for returning to shareholders substantially all of the after-tax cash proceeds of the initial share repurchase" under the terms of a deal inked with Alibaba in May, according to the SEC paperwork.

"In short, Mayer may keep the cash to bolster the books or she may use it for deals or other purposes," Jon Ogg wrote in a blog post at investment website 24/7 Wall St.

"This is how a new CEO can manage to irk shareholders who are wanting some payback for their patience."

Yahoo! shares dropped 3.56 percent to $15.44 in after-market trading.

In May, Yahoo! raided its archrival in its latest quest for resurrection, hiring Mayer when she was a key Google executive to start Tuesday as the struggling Internet pioneer's new chief.

Mayer -- one of Google's first employees -- is now arguably the most prominent woman in Silicon Valley and a rare female CEO at one of America's largest firms.

Yahoo! has been trying to reinvent itself as a "premier digital media" company since the once-flowering Internet search service found itself withering in Google's shadow.

As the company strived for a new identity, it saw an exodus of talent that commenced during a failed bid by technology giant Microsoft to buy Yahoo! four years ago for about $45 billion.

Yahoo! has been cutting jobs in a purge aimed at becoming a "smaller, nimbler, more profitable" company.

AFP


 


PREVIOUS STORY
Facebook 'like' in court over free speech
NEXT STORY
Google fined $22.5mn over Safari privacy violation

Bookmark and Share
   




FIJI NEWS
Shortland St to film in Fiji next weekNew Zealandís long running medical television drama, Shortland Street will be filming in Fiji next week for an upcoming storyline.
SPORTS
Tabualevu keen to develop a winning cultureNewly appointed Fiji Rugby Union chief executive, Radrodro Tabualevu is keen to develop a winning culture in the sport which he holds close to his chest.
HEALTH/FITNESS
Clean-up day to curb dengue outbreakFiji's Ministry of Health has declared a clean-up day next Thursday for residents in the central division as it ups the tempo against a dengue fever outbreak currently experienced in the country.
LIFESTYLE/FASHION
Charlene is Miss World Fiji 201420-year-old Nadi beauty, Charlene Tafunaíi was tonight crowned Miss World Fiji 2014 at the Pearl South Pacific Resort in Pacific Harbour.
ENTERTAINMENT
Shortland St to film in Fiji next weekNew Zealandís long running medical television drama, Shortland Street will be filming in Fiji next week for an upcoming storyline.
OFFBEAT
Mercury 'took Princess Diana to gay barQueen singer Freddie Mercury disguised the late Princess Diana as a male model and smuggled her into a notorious gay bar, according to a memoir serialised in Britain's Sunday Times.
NEWS SPORTS INFOTAINMENT SERVICES MOBILE EXTRA HOT TOPICS