Ms. Marisa Mayer is in a crucial situation now where she is
left in a dilemma to make a fairly tough call. The extracts of the decision is
that will she would give up on her own plans to cater to the stakeholders
need.
According to a report by Bloomberg, Ms. Mayers is in a tough
situation where she has to decide if she wants to give the shareholders at YHOO
higher value or run the massive business on her own. Whatever decision she
makes, she has to let go of one thing or the other. YHOO currently plans to
sale out its remaining stakes to the Chinese Ecommerce giant Alibaba. The issue
the company is facing currently is that if it chooses to sell out then they
would be liable to pay tax deductions which are expected to compound to 35
percent. In general if it agrees to do so them the company will be liable to
the government an amount of 15 billion dollars out of their total net worth of
44 billion dollars.
Mayer currently plans to opt for something that can result
in a tax free arrangement. One way deduced is that she spins off YHOO holdings
in Alibaba to a separate company. This will result in offering the remaining
value to the shareholders at Yahoo. This option that does not seem quite
possible at this stage since it would require Mayer to lead the company almost
a quarter of YHOO’s size.
The issue remains to be a mystery since no such comment has
been received from authorities regarding the matter. Although it is expected
that Ms. Mayer would soon stand steadfast regarding her plans about the
divestiture. Ms. Mayer is most likely to
address other issues regarding the company soon when she addresses the
masses. In a conference call held
recently by Mrs. Mayer stated that, the
company has hired top notch tax experts
that would help them to come out of the mess they are currently into. The
company needs to come up front and state what they really expect and what they
plan to do.
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