Embattled Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer, is set to announce the company’s earnings at a time she is facing immense scrutiny on the under performance of the company. During an interview on Fox Business, former New York Times Digital Chief, Martin Nisenholtz, reiterated that Yahoo is facing one of the toughest runs in the industry as competition continues to pound it from both sides.
Mayer’s remarks this week will be crucial if she is to assuage investor concerns and gain the much-needed support for her turnaround plan.
“It is a tough one, Google Inc. (NASDAQ:GOOGL) owns search; Facebook Inc. (NASDAQ:FB) owns social. She owns audiences, but they are hard to monetize, and it is a declining asset. [..] She has got a very-very tough road to hope. I think that’s why this combination with AOL comes up because it is kind of one and one can make two and half, “said Mr. Nisenholtz.
A merger with AOL, Inc. (NYSE:AOL) is seen as one of the best plays that would give Yahoo! Inc. (NASDAQ:YHOO) an uplift on the advertising front, currently struggling amidst increased competition from Google and Facebook. Mayer has already stated that she will analyze the probable acquisition of AOL and would be looking forward to discussing the same with Starboard Value.
Nisenholtz argued that Mayer will have to find a way of monetizing the current audience if Yahoo! Inc. (NASDAQ:YHOO) is to enjoy any success going forward.
“[..] They were the first in ad media they bought Right media. They need to get that going again they need to be able to monetize this audience in a much more fruitful way than they have been doing. If they can do that if they can just raise CPM because it is a very big audience still they have something to mind, “said Mr. Nisenholtz.
Mayer is set to announce Yahoo! Inc. (NASDAQ:YHOO)’s earnings amidst investors and analysts awaiting to hear what she has to say about her acquisition strategy as well as cost-cutting measures that might be forthcoming.
Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW