Yahoo stock continued to tumble after it disclosed new turnaround plans, which include slashing 15 percent of its workforce and considering ''strategic alternatives.'' Bobbi Rebell reports.
Yahoo CEO Marissa Mayer telling Reuters the company will entertain acquisition offers for its core internet business. But she says top priority is to execute its turnaround plan. That includes a spin off of its core business from its stake in Alibaba. Mayer said any sale was unlikely to be completed before a separation. Investors weren't impressed, sending the stock down to the upper-20s, its lowest level in nearly two-and-a-half years. Her plan also calls for Yahoo to cut 15 percent of its workforce, shut down some offices, sell non-strategic assets, like real estate, and shift resources to mobile search. Mayer has been at the helm for more than three years, but Yahoo has been falling behind rivals, like Facebook and Google's parent Alphabet. Analyst Scott Kessler says, he believes she will be out by 2017. More than half a dozen Wall Street firms cut their price targets on Yahoo stock. S&P Capital IQ's Scott Kessler thinks Yahoo is undervalued. SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "We think the core business is worth about $8 a share, and, so, when you put that all together that is why we have a $38 twelve-month target price, and that is why we have a buy opinion on the stock." He's optimistic Yahoo can attract buyers for all or parts of its businesses, and that Mayer will leave after a sale.