Yahoo board to weigh future of company in series of meetings

SUNNYVALE, Calif. (KGO) -- Yahoo's board of directors is meeting today as the company and CEO Marissa Mayer face criticism about the direction of the company. Some shareholders are even calling for Mayer to step down.

The regular quarterly meetings start today and last until Friday; they're not open to the public, but questions about what's next for the company are expected to linger for a while.

Yahoo is dealing with a lot of drama. The Sunnyvale based internet company is facing an uncertain future. Analysts say the internet business has stalled just three and a half years into CEO Marissa Mayer's tenure, despite her efforts overhauling Yahoo's internet business. The plan to spin off its stake in Chinese e-commerce giant Alibaba, currently worth about $30 billion dollars, is coming under fire because of changing tax implications. The board of directors is now facing major pressure to sell off its internet business instead.

Tech analyst Tim Bajerin thinks the board of directors will take a wait and see approach at its meetings this week.

"I think they would do, at least for another quarter, is try to figure out the best way to monetize and expand the internet properties while they're waiting to see what the government is going to say of a potential Alibaba spinoff. That tax burden could be huge to them.

Mayer recently expressed confidence the company is heading in the right direction, drawing up plans for another major shake-up and eliminate hundreds of jobs. She promised more details in January.

One hedge fund investor is threatening a shareholder mutiny aimed at overthrowing Yahoo's board next year, if they don't change their current course of action. If that's successful, it could end Mayer's tenure at the company.

"She's under great pressure. But with the board being behind her I doubt there would be any significant change that would take place over the next three to six months. But she's going to have to perform significantly with that internet property," said Bajerin.

Yahoo's stock surged today by more than six percent on news of a potential sale of its internet business.

ABC7 News reached out to Yahoo for this story, but the company declined to comment.
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