Yahoo’s 1Q results show progress under new CEO

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Thompson told analysts Tuesday that the cuts needed to be made because Yahoo had grown too unwieldy. He also said he is in the process of trying to sell about 50 Yahoo products and services that weren’t attracting enough traffic to the company’s website or producing enough revenue.

If Thompson’s vision pans out, the company will do a better job of mining the information that it collects about the nearly 700 million people who visit its website each month so it can do a better job of showing them online advertising and other content that appeals to their personal interests. If Yahoo can achieve that goal, he reasons Web surfers will come back to Yahoo more frequently and advertisers will increase their spending on the website.

As Thompson overhauls Yahoo’s operations, he is also trying to appease shareholders by selling a portion of the company’s roughly 40 percent stake in the China’s Alibaba Group. Yahoo was nearing a deal to sell most of its stake in Alibaba earlier this year, but the complex deal that had been on the table fell apart shortly after Thompson took over as CEO. Thompson told analysts Tuesday that the two sides are now talking about a simpler deal that would enable Yahoo to pay most of the proceeds to shareholders.

As of March 31, Yahoo estimated its holdings in Alibaba were worth $14 billion, before taxes. Thompson didn’t specify how much of the Alibaba stake that he is looking to sell.

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