UPDATE video above: Yahoo to Reconsider Sale of Web Business Instead of Spinoff - Bloomberg Business (8 Jan 2015)
"On Wednesday morning, activist shareholder Starboard Value expressed "extreme" frustration with the company's current leadership, suggesting that they may push for the ousters of both the current board of directors and CEO Marissa Mayer" - Yahoo plans new round of layoffs - San Jose Mercury News
A Look at Activist Behind Starboard's Letter to Yahoo - Activist investor Starboard Value LP is threatening a proxy fight and calling for a change in management at Yahoo Inc. Here's a look at Jeffrey Smith, the firm's leader. (Published on Jan 7, 2016 by WSJ.com)
|Yahoo! one-year stock chart (NASDAQ:YHOO) (source: google.com)|
When is the Yahoo! Board going to tell CEO Marissa Mayer "it's over" and tell her to leave?
Corporate Accountability: Starboard Value LP is a Yahoo! shareholder and has been engaged (along with other activist shareholders) in urging the Yahoo! Board and management to make changes:
- Starboard Value Calls for Shake-Up at Yahoo and Shift in Strategy - New York Times: "A prominent hedge fund that has long criticized Yahoo's management, Starboard Value, on Wednesday called for changes to the web pioneer's board ..."
- Starboard Value calls for shake-up at Yahoo - Financial Times
- Yahoo investor Starboard Value raises pressure on chief executive Marissa Mayer - The Guardian
- Starboard to Yahoo: Investors have lost confidence - CNBC
Starboard Value's Letters to Yahoo!
- August 10, 2015: Starboard Value Delivers Letter to Yahoo! Inc. CEO (pdf)
- November 19, 2015: Starboard Value Delivers Letter to Yahoo! Inc. Chairman and CEO (pdf)
- January 6, 2016: Starboard Value Delivers Letter to Yahoo! Inc. Board of Directors (pdf)
"... Yahoo’s current management has had over three years to demonstrate progress towards improving the Core Business, but despite these efforts, the Core Business continues to be plagued with deteriorating financial performance and an accelerating number of executive leadership departures. Annual operating costs have ballooned, increasing by approximately $500 million despite revenue that has been declining. In addition, the Company has spent over $2.3 billion on acquisitions. Unfortunately, most of these investments have been misguided, poorly overseen, and, ultimately, shut down. Even with these massive investments, the trajectory is decidedly negative ... EBITDA continues to decline quarter-after-quarter while spending continues at an alarming pace ... The Board must accept that significant changes are desperately needed. This would include changes in management, changes in Board composition, and changes in strategy and execution ..." (emphasis added)
- Yahoo's troubled advertising business: "The company's ad business, which brought in $1.15 billion in the second quarter of 2015, is rife with ad fraud, multiple sources told CNBC."
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