Yahoo’s decline in sales in the recent quarter was unsatisfying for everybody as they didn’t meet what was expected from them in Wall Street. Investors urged yahoo and their Chief Executive, Carol Bartz, to upgrade the level of their services and come up with a better show which strengths their stock value.
Analyst at Gleacher & Co, Yun Kim told that Carol was under pressure already and this quarter’s show didn’t help improve the situation and she is still on the hot seat.
Carol, who joined yahoo in 2009, dropped many of yahoo’s web businesses and had laid off staff as well, addressing to a conference of analysts on Tuesday, defended the company’s progress according to her barometer as she said that yahoo’s technology has improved, and operating margins are also doubled to 12% in the second last quarter of the year.
After reports, that showed that private companies like Silver Lake Partners are getting interested in yahoo’s buyout with AOL Inc or News Corp’s partnership, yahoo’s shares gain 6 percent since last week. When Carol was asked about it, she didn’t comment on this.
Brian Pitz, UBS analyst told that it won’t be that easy as it sounds, Yahoo has the ability to draw huge costs and it’s the largest in display advertising, and this is the reason that there would be so much of politics involved which won’t let it happen.
It is also said that yahoo’s buy out will depend upon, if yahoo sells out its 40 percent stocks in China’s Alibaba Group. However Yahoo has indicated that have no urgent intentions to do this.
Kim from Gleacher & Co analyzed that many people didn’t have high hope with yahoo which could be a reason for a steadiness in yahoo’s shares. She added that the rumor of yahoo’s buy out is another reason of yahoo’s Asian assets remained on the surface.