NEW YORK, February 23. /Corr. Alexey Kachalin/. The U.S. Time Corporation, which publishes the eponymous magazine and the magazines Fortune, People and Sports Illustrated, intends to acquire the main part of the business owner “search engine” Yahoo. This was reported by business news Agency Bloomberg.
Yahoo will reduce its staff by 15%
“This idea really interested Time Executive Director Joe Rappa”, – quotes Agency the words of one of its sources. According to him, Rippa not mind that his relatively small Corporation to compete in the competition for the share of Yahoo with such monopolies in the market of cellular communication of the USA, both Verizon and AT&T. the lead Time calculates to beat the competition by proposing a merger of assets (Reverse Morris Trust), which allows to dispense with the payment of taxes from the transaction.
According to Bloomberg, Rippa a fully formed idea of what to do with Yahoo. Therefore, in case of success he will achieve resignation of the President and Executive Director of the operator of our search Marissa Mayer.
Earlier, Reuters reported that Yahoo will sell off its most viable assets, including search engine, email service and news. This formed a Committee of independent Directors, which invited representatives of banks Goldman Sachs, J. P. Morgan, as well as companies PJT Partners LP and Cravath, Swaine & Moore.
Mayer tries to increase the attractiveness and profitability of Yahoo by reducing headcount by 15%. Most of the layoffs will be in the first quarter of 2016. By the end of the year, the company plans to have in total about 10 thousand employees: 9 thousand in the state and 1 thousand as contractors. This is approximately 42% less than it was in 2012. As the company explained in its latest report, the downsizing will reduce operating expenses by $400 million a year.
It is also planned to close five branches in Dubai, Mexico city, Buenos Aires, Madrid and Milan.
Earlier The Wall Street Journal reported that potential buyers of Yahoo shares are Empire of Rupert Murdoch’s News Corp, Telecom Verizon, IAC/InterActive, headed by Barry Diller. The newspaper believes that the main attraction of the Internet business of the company is not currently high, because Yahoo is losing market share of advertising on the Internet, which is its main source of income, in the face of competition from Facebook and Google.