Here is my angle on the top stories today on SiliconANGLE.com new Breaking Analysis morning program. Tune in every morning to SiliconANGLE.com and YouTube.com/siliconangle for more real time Breaking Analysis.
Questions that I answer in this Original Breaking Analysis segment by SiliconANGLE
Marissa Mayer is still making headlines as Yahoo’s newest CEO – is she a good fit for the job? Also, will HP bow to analysts’ pressure for an internal break-up?
Twelve weeks ago, she became CEO and is Yahoo’s fifth CEO in four years. She is no doubt the highest profile CEO hire since the days when Jerry Yang was in charge, but the question is whether she will be able to last longer than her predecessors.
Mayer has her work cut out for her. Yahoo is a brand suffering from somewhat of a talent drain and there have been years of chaos on its board and in its upper ranks. Its second-quarter results were grim, and the Yahoo stock price is about half of what it was five years ago. What does she need to do to turn the brand around?
In her first several weeks, Mayer has hired some people—a new CFO, a new marketing chief, a new head of human resources, a new publicist—and fired some others. She freed up $3 billion in cash from the sale of part of Yahoo’s stake in the China-based e-commerce site Alibaba. Yahoo investors are urging Mayer to buy back shares rather than pay a dividend from that deal. Analysts have predicted that with a buyback, Yahoo’s stock can double to $32 within a year. In what other areas would a buyback help Yahoo?
Yahoo has said it will return proceeds from the Alibaba transaction to investors, without specifying when or how. How significant of a decision will this be viewed for Mayer – whether to keep the company’s best interests on the agenda or appease the shareholders?
So we’ve been talking about the corporate governance of Yahoo – let’s switch gears and talk a little bit about the corporate governance of another Valley company – HP. Analysts are saying that HP should break itself up and separate its division that sells printers and PC’s from the one that caters to businesses. Do you think this is a good idea, or is this just a recipe for channel sales destruction?
A spokesperson for HP stated that the company feels it’s stronger together than apart – do you agree with this?
One more quick note from the Valley – we saw the best headline out on gizmodo.com – “Oh God, Bravo’s Silicon Valley Show Looks Even Worse Than We Thought” – have you seen any of this reality show promo yet?