Mayer's strategy, although not laid out in full, is reportedly to "leverage the company's strong franchises," and improve its focus on search. Wieser noted the change in strategies from Levinsohn to Mayer, as Mayer focuses more on growth initiatives, and "improve its core product offerings rather than to generate cash or profits as a first priority."
If the cash is not returned to shareholders and acquisitions are indeed a part of the plan, there are several names which have been mentioned before as potential takeover targets.
The Weather Channel, and
(TRIP - Get Report) were names that were floated as part of the cash-rich split deal between Alibaba and Yahoo! that ultimately went nowhere. Ironfire Capital founder and president Eric Jackson suggested others as well.
"Lots of good ones out there," Jackson said in an email. He mentioned
(YELP - Get Report),
(Z - Get Report), in addition to Trip Advisor.
Zillow already has a relationship with Yahoo!, as the company runs Yahoo! Real Estate, one of the largest real estate portals on the Internet. Zillow could not be reached for comment on this story.
Investors have initially reacted to this news negatively, sending shares lower in Friday trading. Should Mayer successfully integrate one (or more) of the aforementioned names, investors might want to think otherwise.
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Written by Chris Ciaccia in New York