It’s almost two years since Marissa Mayer took charge of Yahoo! Inc. (NASDAQ:YHOO), but most of the investors and analysts alike, can’t make up their mind regarding has her tenure till now been good or bad for Yahoo! Inc. (NASDAQ:YHOO). Yahoo! Inc. (NASDAQ:YHOO) didn’t report anything extraordinary in its second quarter earnings and the only thing that the analysts are saying positive about the company doesn’t have to do anything with the company’s core business at all, it is the Alibaba Group IPO.
Colleen Taylor, TechCrunch reporter, and Eric Jackson, founder of Ironfire Capital, discussed their views on Marissa Mayer’s tenure as CEO of Yahoo! Inc. (NASDAQ:YHOO) on CNBC.
“[…] In the first six months of her tenure, there were a lot of obvious signs that she had improved morale at Yahoo! Inc. (NASDAQ:YHOO), but if you step back and look at what she has accomplished, she has spent $2 billion on various acquisitions that have really destroyed value in the eyes of shareholders. It’s been a huge wealth transfers to VCs. Shareholders have nothing really to show for it and probably the biggest problem is just sales, sales have been on a sort of terminal decline and they have gotten worse under her watch […],” Jackson said.
Jackson feels that sales declined majorly because Mayers hired a COO and Head of Sales who was not fit for the job and because of this disastrous move Mayers lost the trust of a lot of large advertising agencies. However, Taylor did not agree with Mr. Jackson’s views.
“[…] We have to remember that when Marissa Mayer came on to Yahoo! Inc. (NASDAQ:YHOO), there were 60 mobile engineers at the company. In this day and age, that’s ridiculous, under Mayers leadership now there are hundreds of mobile engineers at Yahoo! Inc. (NASDAQ:YHOO), more than 500 at last count back in May. So, all of these M&A transactions have been about bolstering their engineering talent […],” Taylor said.