The troubles in Yahoo don’t end. Jerry Yang, who told its employees that it will not sell Yahoo after firing its then-CEO Carol Bartz, has confirmed in a memo that the company has looked to advisors to help facilitate a deal to buyout the fledgling company.
In a leaked memo obtained by Business Insider, the company has hired investment bank Allen & Company to handle “fielding inquiries from multiple parties that have already expressed interest in a number of potential options.”
“We will take the time we need to select and structure the best approach for the company, its shareholders and employees.”
Yahoo’s troubles began when the company rejected a substantial bid from Microsoft to acquire them. That largely failed, after the Yahoo board rejected it and wanted more money. Then its value plummeted, and that forced Jerry Yang from his position of CEO to “Chief Yahoo!” – yes, they do have a position for him called “Chief Yahoo!” – and put Carol Bartz in place.
Under Bartz, despite the numerous closures and sackings, the company was still financially viable and even Bartz herself is reported to have told the board that it would take a long time to restructure Yahoo back into revenue growth.
Whatever Yahoo does, it needs to fix up its problem: where is it going. Google at least has a focus strategy to collect data to help its ads, and that means opening services in every corner. AOL has put its money into content – and that has largely worked, with the acquisition of TechCrunch, Huffington Post and Engadget, three of the largest publications in their relative fields. Microsoft also has direction in pushing more services online and connectivity amongst each other with its Live products, such as Xbox Live, Windows Live and Office Live 365.
The full memo, acquired by Business Insider, can be found below:
In our recent all hands meeting, we talked about the Board’s strategic review to help return the Company to a path of robust growth and industry-leading innovation. While our teams are working to evaluate the many opportunities by which Yahoo! can continue building on our success, all kinds of people have been – and will continue – speculating in the media about where that work is headed, so we thought it best to provide you with some additional context directly from those of us who are closest to it. We don’t have specific news to share with you today, but we are committed to communicating with you directly from time to time – especially given the level of external swirl – so that you know where we are in the process. You can expect periodic updates from us and we encourage you to communicate with us as well.
At the heart of what we are doing is our belief that Yahoo!’s core strengths are not only relevant to where users are going today, but can serve as a foundation for the next phase of our company’s growth. Consider our strengths: we have 680 million users worldwide. We have nine of the #1 properties in the U.S., and we are a leader in display advertising. Our brand is iconic – we are not the only ones who bleed purple. By whatever measure you want to use – engagement, quality of products and services, our value to our advertisers – we all feel that we have what it takes to succeed. Also, our Asia assets remain one of our top priorities and we continue to work well with the teams there. As you may have seen, Alibaba Group has just announced a liquidity event for its employees that reflects a continued appreciation in its value, and therefore of the value of our stake.
What Yahoo! needs to do better – and we’ve talked about this – is accelerate innovation, reignite inspiration, and give our users what they want now – great content that is engaging and easy-to-use on any device and provides an experience in which they can participate and contribute. Perhaps most importantly, we need to anticipate what they will want next. That is the path to enhancing the value of Yahoo! for all of its stakeholders, including its users, customers, shareholders, partners and Yahoos everywhere. Our strategic review is designed to help us map out the best way to achieve that.
At this point, we cannot offer many specifics about the Board’s review; we’ve just gotten started. You should know that the entire Board and management team are fully aligned and unanimous in their views regarding the scope of this work. Allen & Company was a logical choice to help us in this review, because they have been one of our advisers for some time, and this is familiar territory for them. Achieving success in our sector is intrinsic to what they do for a living, and they will be constructive partners.
Our advisers are working with us to develop ideas that we will pursue proactively. At the same time, they are fielding inquiries from multiple parties that have already expressed interest in a number of potential options. We will take the time we need to select and structure the best approach for the company, its shareholders and employees.
In addition, as we announced previously, the Board has commenced a search for a permanent Chief Executive Officer. That process also continues.
When we have updates that we can share we will do so. There will be plenty of rumors and speculation as different parties try to advance their agendas in the media – but it is important that we not be distracted by the rumors and speculation.
You are instrumental to the success of our business – we can’t do it without you. While we will move with a sense of urgency, this process will take time. Months, not weeks. We know that’s a lot of potential distraction, but we believe it will be worth the wait. We are forging a path to a next phase of growth for Yahoo! that feels like our best days: fun, full of possibility, and always in search of how to deliver the new thing people want from us. Together, we can write the next great chapter in the Yahoo! story and secure our place as one of those rarities: an internet company that endures.
Jerry Roy David