The latest developments sees a potential offer from the UK's owner of the Daily Mail which is perking up the level of interest around the sale of highly sort after assets. A few other companies that's been named as potential suitors are Microsoft, Google, Time Media and the lead bidder Verizon to name but a few.
Yahoo's management decision to extend the bidding deadline till the 18th April 2016 seems to have worked after today's news of the Daily Mail's interest adding speculation that a bidding war may ensue which would ultimately generate more cash flows for an ailing Yahoo.
Having briefly mentioned the company's run of bad luck recently it would be best to note that CEO Marissa Mayer hasn't succeeded in her quest to turn the firm into a lean, mean search engine machine that was initially flaunted at the onset of her tenure. Part of the reason for the company's poor performance was her inability to get the company's staff on her side after a shakeup in company processes and flexibility led many employees to believe Mayer wasn't being true by subsequently side stepping those same rules in her own capacity.
This after Mayer who had returned to work two weeks after giving birth built a nursery for the new additions to her family next to her office whilst cancelling flexi hours as well as working from home to cater for new mothers.
Mayer, who's a former Google employee herself, wouldn't be ignorant of the way tech companies are setup with the work space for staff playing a pivotal role in the success of the company. Having a company that's constantly pushing the boundaries of technological innovation coupled together with intellectual minds requires a hard grind to compete against impressive opponents in the field of I.T but at the same time creates a need for a harmonious working environment to stimulate the creation of new ideas, an event most tech companies have experienced.@Yahoo extends initial bid period for potential buyers till April 18, follows reports Verizon & Google planning bids https://t.co/JOaqZf0uym— Marie-Michele Caron (@mariemichelecar) April 8, 2016
Separating management's need to follow the rules away from that of a common staff member placed the company in a precarious position by implying an "us and them" attitude that has formed a resistance against further changes that are vital for the success of their plans.
But then considering the number and quality of companies coming forward with bid proposals, one starts to wonder if Mayer and her management team were the best selection to turnaround the company. The range of opportunities emerging from the bid process is spectacular yet Yahoo wasn't able to take advantage of that with possible partnership deals?
What this highlights is not an efficiency problem with assets but rather a shortfall of management's ability to adapt to a constantly changing business environment. Who know's if Yahoo may have become a decent competitor to global tech giant Google, but one thing is for certain, breaking up the assets won't solve the dilemma for Yahoo but it will open up synergies that will open the gateway to new business model thinking within the context of the IT sector.
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