Remember the line about the manager with a reputation for brilliance taking on a business with a reputation for poor economics? It is usually the reputation of the business that emerges intact.
Few companies have gone further than Yahoo in demonstrating the truth of Warren Buffett’s amusing dictum. Over the past three and a half years, the ailing US internet company has to all intents and purposes bet the ranch on an attempt to revive its fortunes under the leadership of the Silicon Valley superstar, Marissa Mayer.
Nothing has been too much for the ex-Google executive. Billions of dollars have been lavished on takeovers and the financing of new product development. Ms Mayer’s eye-popping package alone could end up paying her more than $250m if she stays till next year.