Yahoo may have the revenue and scale to make a comeback, but increasingly, experts are questioning whether it is missing a key ingredient: Human capital.
Investors woke up to unsettling news Monday, after Yahoo hired global management consulting firm McKinsey & Co. to help the company decide which units to shutter, sources told Re/code. And amid an ongoing flight of top executives, CEO Marissa Mayer is asking key staffers to commit to several years at the company, sources told Re/code.
"Yahoo's situation has been very difficult for a decade," Roger McNamee, co-founder of Elevation Partners, told CNBC on Monday. "There's a classic problem you see in management you see across the whole economy, where companies reach a certain scale, and then they are convinced that when they want to do something new, they can't invent it, they have to buy it, because it takes too long to create something from new and they want to have immediate impact. At this point, there's nothing they can do to salvage this situation."