Yahoo's Expanding Their Long-Term Options

Yahoo's Expanding Their Long-Term Options

posted Sunday Mar 6, 2016 by Scott Ertz

Yahoo's Expanding Their Long-Term Options

The fight for Yahoo's future has been an interesting, winding journey. One day they want to sell off their stake in Alibaba, the next day they want to keep that and sell off their core businesses. All along, CEO Marissa Mayer has fought the sell-off of major properties and investments, She has maintained that the company's turnaround plan is close to producing fruit.

This week, the company's CFO Ken Goldman said at a conference that the sell-off plans have evolved once again. Rather than selling off core business units and investments, they are looking for alternatives. One of those alternatives is to sell between $1 and $3 billion worth of non-core assets. Goldman said that all non-essential assets, including patents, land and business units are all up for grabs.

Depending on the patents, this could be either really good or really bad. Over the past 3 years, the company has generated $600 million in revenue just from the licensing of patents. Rather than selling off what they have, they could potentially focus harder on finding new patent licensing deals to increase revenue, without becoming a patent troll. They could make some quick cash selling those patents and their licensing deals, so long as they get free use of the patents from their new owners.

Goldman did not confirm who was interested in making offers, but rumors have surfaced that Time Inc. and Verizon are among the interested parties. Several shareholders and investors are pressuring the company to act fast, as return on investment has been low for a long time.

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