Marissa Mayer just showed investors why she’s the boss at Yahoo. Although it didn’t go down well with the investors. The story began with the announcement in May when it was declared that Yahoo will be selling its 40% stake in Alibaba for $7.1 Billion. Investors believed that the after-tax cash proceeds in the order of $4.2 billion would go back to investors in the form of dividends. Mayer just scraped this plan and said this will be retained for long-term strategies for the company. Keep reading for more.
With the Board supporting her decision, investors are fuming over her long-term plan as opposed to the short-term gains they were expecting. As expected, Yahoo shares dropped by 5.37 percent over the news, but then again its just based on market speculation about the validity of this decision. Now the only question is what will Yahoo do with the money ? Keep it for future use or acquire some companies to broaden its horizon.