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WSJ: Marissa Mayer To Announce 'Refreshed' Plan For Yahoo On Tuesday

WSJ: Marissa Mayer To Announce 'Refreshed' Plan For Yahoo On Tuesday
Tech1 min read

Douglas MacMillan of the Wall Street Journal says Marissa Mayer will announce a "new plan" for Yahoo this week.

Yahoo will hold its third quarter earnings call this Tuesday.

Citing a source briefed on Yahoo's plan, MacMillan says Mayer will discuss the following on the call:

  • A change in acquisition strategy. MacMillan says Mayer will defend her decision to spend $200 million or so on "aqui-hires" - those deals where Yahoo bought failing startups in order to hire their engineering teams. After defending acqui-hires, Mayer will promise to do fewer for them - in favor of larger acquisitions that might be able to help grow Yahoo revenues.
  • Cost-cutting plans. "Ms. Mayer is expected to outline cost-cutting efforts. Mayer is also likely to explain her recent decisions to lay off nearly 500 employees in India and Jordan as part of a broader effort to cut costs."

Mayer is currently under pressure from an activist shareholder Jeff Smith. Smith, of Starboard Value, wrote an open letter a couple weeks ago, says that Mayer should quit making acquisitions altogether, find a tax efficient way to monetize its Asian assets, and sell to AOL.

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