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Yahoo to Spin Off Its Core Businesses

nytimes.com

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Re: Yahoo to Spin Off Its Core Businesses

#3
Oh just give this poor old dog the old Yeller treatment already. I don't know what's more sad, the fact that Yahoo has fallen from where it once was, or that it's falling so slowly and that it's new CEO, once thought to be it's saving grace, is letting the bleeding continue for seemingly as long as she possibly can.

I can't imagine the morale issues in the trenches of Yahoo, it's gotta be just horrible in there.

Re: Yahoo to Spin Off Its Core Businesses

#4
Can someone explain why do business like to create new company? What are the benefits for the financial return other than having a book reporting individual revenue? In the end, aren't they going to be under the same parent company, which, if one wishes, can actually challenge and even overrule the child company CEO's decision behind the scene? HP, Google, now Yahoo.

Re: Yahoo to Spin Off Its Core Businesses

#5
post #4

Can someone explain why do business like to create new company? What are the benefits for the financial return other than having a book reporting individual revenue? In the end, aren't they going to be under the same parent company, which, if one wishes, can actually challenge and even overrule the child company CEO's decision behind the scene? HP, Google, now Yahoo.

Usually it is because of stock and stakeholders that a company splits, not because a CEO likes to split his or her company. Stakeholders might demand a split so problems with one company might not influence stock price of the second.

Re: Yahoo to Spin Off Its Core Businesses

#8
post #6

It's almost as if Yahoo doesn't know what their core businesses are anymore. It will be interesting to see if they come out of this with better understanding of their identity.

It seems clear to me. They're an investment business that owns shares in successful companies.

Re: Yahoo to Spin Off Its Core Businesses

#9
post #4

Can someone explain why do business like to create new company? What are the benefits for the financial return other than having a book reporting individual revenue? In the end, aren't they going to be under the same parent company, which, if one wishes, can actually challenge and even overrule the child company CEO's decision behind the scene? HP, Google, now Yahoo.

If they're fully spinning it out, it isn't just "under the same parent company". They can make two companies each with their own stock, initially distributed to shareholders of the initial company. After that, some stockholders might buy/sell shares of company A and some might buy/sell shares of company B, so that they're truly separate companies with different management and owners and such.

Re: Yahoo to Spin Off Its Core Businesses

#10
I never understood farming out their search engine to Bing in the first place. Google literally prints money with their adwords search business. Seems instead of attempting to innovate they just threw in the towel and gave up? I just find it hard to believe that Google is the only way you can run a successful search engine.
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