Yahoo announced today that it’s no longer going to try and spin out its stake in Alibaba, citing tax concerns. Instead, it’s exploring a way to spin out its core Internet businesses, essentially turning Yahoo into a holding company for Alibaba.
So how are those core Internet businesses doing? Not particularly well, as this chart from Statista shows. Since the beginning of 2013, display and search revenue are basically flat, and “other” revenue, including its small business services, is down. Meanwhile, its quarterly operating profit has dropped as customer acquisition and other costs have gone up.
This is the troubled company that CEO Marissa Mayer inherited in mid-2012, and so far she hasn’t been able to turn it around. Time may be running out.