The announcement was made prior to the presentation of financial results for the fiscal fourth quarter of 2015, during which the company posted revenue of $ 1.27 billion and a profit of 63 million, although the company had accounted for 4, $ 5 billion write-down for acquisitions made during the year.
The slogan seems to be "streamlining", with Yahoo that will try to organize a smaller catalog of products and services as well as to emphasize the strengths and have a better ability to execute, in addition to bringing more value for shareholders, advertisers and users. This strategy is therefore placed the decision to terminate, in the course of 2016, the activities of the Games and Smart TV divisions. "Yahoo can not emerge in the hearts and minds of consumers with a complex product catalog and fragmented" stressed Mayer.
Yahoo then will focus on three core products (Search, Mail and Tumblr) and four vertical areas (News, Finance, Sports and Lifestyle), maintaining the services centered on growth markets such as USA, Canada, the UK, the German, Hong Kong and Taiwan.
As always unpleasant, but probably inevitable, the staff cutting measures: by the end of the year the company plans to bring to 9000 the number of employed and the number of contractors in 1000 (a reduction of about 1,700 people in all), in addition to the closure of offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan during the next three months. Reducing staff and closing offices will save $ 400 million. On direct question, Mayer did however indicate that Yahoo will continue to acquire and take, even if at a lower rate than last year.
The Italian office has closed after 18 years in business, it is contextual contracts with them Mediaset that for a period of three years will act as Yahoo's advertising offerings dealer in Italy, which includes the display, and native video advertising and content marketing.
Another element of attention concerns the operation of reverse Alibaba spinoff. Small step back in December, Yahoo has announced plans to spin off its activities related to the Web in a separate company, leaving the original company a mere holding of shares that Yahoo itself owns in Alibaba, a 15% package worth $ 31 billion. The decision to proceed in this way, and not to simply spin off the Alibaba shares, was taken for reasons of fiscal convenience in order to avoid a heavy tax on the net value of Alibaba.
Marissa Mayer explained that the operation of reverse spin-off will proceed in the course of 2016 and will be completed within ten months. In the process the Board will seek to also check other strategic alternatives for those parts of Yahoo's business that should still have an impact on the core activities. "Yahoo has begun to consider the sale of non-strategic asset value as well as the monetization of non-core and the sale of real estate owned patents. Later this year the company believes that these efforts can generate between one and three billion dollar liquidity "has informed the company.
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