Published via L: 2013-05-29 06:00:31
Since Marissa Mayer took over as CEO of Yahoo last year, there’s been a lot of talk about how the famously detail-oriented ex-Googler will “refocus” the company. But it’s becoming increasingly clear that Mayer is broadening, not narrowing, Yahoo’s scope, cementing its once passé reputation as the original internet “portal.”
My Two Cents
Marissa Mayer is pulling a Michael Jordan on the Internet industry. Mayer is imposing her will on anybody and everybody around her. Slight overstatement, maybe. But she is buying cool in the Summly app (which was more about a 17 year overhyped wonder-child), she has grabbed Tumblr away from the "other big boyz" and now she's closing in on Hulu! Please pull this off Marissa. Hulu will be much more monetizable than Tumblr. In fact, Hulu will create the true bridge for Yahoo! to the entertainment community. Possibility just as valuable or more than even YouTube depending on how you play it out. Mayer's approach is a classic Michael Jordan tactic in his prime. He senses weakness or hesitation and he goes for the jugular. Marissa Mayer is doing that at Yahoo!
Industry legends like Marc Andreessen said the only way to save Yahoo! was to ax 10,000 jobs. Mayer said No Way. In her own way, she just demanded that people "show" up for work (no more of that weeny work at home stuff for Yahoo!). Marissa Mayer is steel! Wall Street is admiring her work � her share price is now up to $26 per share and almost $28 Billion in market cap. Yahoo! hasn't seen this "shine" since Jerry Yang told Ballmer no at $35 per share. Get this, Yahoo! is only trading at a 7.5 PE ratio (only Aol at 3 trades at a lower P/E ratio meaning there is more room for upside). Google trades @ a PE ratio of 26 and the Industry average is 21.7). At this rate, Marissa Mayer is going to not only rescue Yahoo! but she's going to hit it out of the park with 3 men on base. She still has to increase gross revenue b/c their gross margins are healthy (slightly better than Google's, but on a much smaller gross revenue total). If she does that, this woman walks on water and gives birth. Top that Silicon Valley.
