Until last summer,
) looked like a dying company
, one that peaked in the late '90s. Now it's in the midst of a
resurgence, growing profits and shelling out a billion dollars to
buy social-blogging platforms.
The reason for the turnaround?
Prior to hiring Mayer as CEO last July, Yahoo! had cycled
through four CEOs in four years. Mayer has brought stability,
growth and - most importantly - relevance back to a company that
seemed on the brink of going the way of
Since Mayer's hiring on July 16, 2012, here are some of the
improvements Yahoo! has made:
- Yahoo! shares have shot up 70%, closing at $27 today - the
stock's highest level in five years.
- Profits increased 43% last quarter, and nearly quadrupled
last year compared to 2011. To be fair, however, Mayer only
presided over six of those months.
- The company bought social-blogging site Tumblr yesterday
for a cool $1.1 billion - its most expensive acquisition in a
decade. Founded in 2007, Tumblr has attracted 300 million
monthly visitors wooed by the site's platform, which allows
users to post text, photos, videos and other materials "from
anywhere." Only a company with cash to spend can make that kind
- With Mayer at the helm, Yahoo! has expanded its mobile
footprint by creating new apps - a weather app for
iPhone users, an email app for other smartphones, and an app
that allows iPhone and iPad users to view and share photo using
its Flickr service.
- The company completed a $7.6 billion deal with Chinese
e-commerce group Alibaba back in September. The deal, which was
years in the making, netted Yahoo! $1.3 billion to finance
acquisitions - money the company has already put to good
Yahoo! was in the dumps for years as the company lacked true
leadership, direction and innovation. With Marissa Mayer running
the show, Yahoo! is suddenly hip again, snatching up a popular
social media company like Tumblr the way
did when it
bought out Instagram
Investors trust Mayer. And right now the 37-year-old CEO is
leading an improbable resurgence at a company that 10 months ago
appeared beyond saving.