woolrich outlet milano What Should Marissa Mayer Do Next At

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woolrich outlet milano What Should Marissa Mayer Do Next At

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Started 10 years ago by ahosxfosdg

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What Should Marissa Mayer Do Next At Yahoo Things have gotten a bit more interesting since our last Yahoo (NASDAQ:YHOO) article in October. Starboard Value is still pushing for a Yahoo and AOL (NYSE:AOL) merger, but the fund is getting more vocal in its requests. Starboard is the second activist to put pressure on YHOO in less than three years. Recall that YHOO ended its battle with Third Point in 2012, when Dan Loeb (Third Point founder) helped install Marissa Mayer as CEO. Third Point has since sold its entire stake in YHOO. The trend of activists re visiting previous activist campaigns is becoming a trend in activist investing; think: Oil States (NYSE:OIS), where Atlantic is a new activist and Manitowoc (NYSE:MTW), with Carl Icahn picking up where Relational Investors left off. In any case, Starboard Value now owns just over 0.8% of YHOO, taking a stake during 3Q 2014. It also took a stake in AOL it owns 2.5% of the Internet company and per a September letter, suggested the two should merge. Both YHOO and AOL are in the top 10 of Starboard's portfolio. Starboard Value pro forma portfolioStarboard sent another letter to YHOO last week, urging YHOO not to pursue any large scale acquisition (read: don't buy Scripps (NYSE:SNI) or Time Warner's (NYSE:TWX) CNN)). Rumors are out there that YHOO is on the hunt for a company to buy. The potential YHOO Twitter (NYSE:TWTR) buyout rumor is well told, but Yelp (NYSE:YELP) and GrubHub (NYSE:GRUB) have also been circulated as potential targets. Instead, Starboard reiterates its idea of "buy AOL." Starboard has intimate knowledge of AOL where it launched a proxy battle back in 2012 in an effort to gain a greater say over the company's content strategy. It ultimately lost and sold its stake. The crux of Starboard's recent letter is that it warns YHOO against major acquisitions, wants the company to monetize its BABA and Yahoo Japan stakes in a more tax effective manner and still advocates for a YHOO AOL merger, pointing to various synergies and overlaps in the two businesses. The Real Value Of YahooInquiring minds are constantly questioning what YHOO will do with its 15% stake in Alibaba (NYSE:BABA). It hasn't offered any insight into its plans, but the stake holds a lot of value for YHOO and that's what most of Wall Street is interested in. The key risk is that YHOO cashes in its BABA stake and uses it to fund an acquisition spree. But given the company's track record of acquisitions, many investors are hesitant to see YHOO gain free reign over a sizable amount of capital. There's also the idea of a cash rich split. Here YHOO could exchange its BABA stake for a company that BABA has or creates. Taking Aim At MayerIn its letter, Starboard writes (emphasis mine): Should you instead choose to proceed down a different path by pursuing large acquisitions and/or a cash rich split, both of which have been speculated,piumini peuterey outlet The 5, such actions would be a clear indication to us that significant leadership change is required at Yahoo. Despite Wall Street's displeasure for Mayer's actions, she is still well respected in the tech community. Jason Calacanis, an entrepreneur and angel investor who has some of the best domain knowledge in the media space that I've seen in awhile, penned an interesting piece defending Mayer just days before Starboard's letter. In it, Calacanis notes: Marissa has two simple jobs: 1. get Yahoo Mail, Yahoo Finance, Yahoo Sports, Yahoo Search, etc. to grow within 50% +/ its competitors), and 2. Keep buying companies in the hopes of finding a YouTube or Instagram. Point 2 is a strategy most on Wall Street take issue with. But Calacanis isn't advocating using the $40bn plus from its BABA stake to make a large Twitter size deal; rather, he goes on to note: If Marissa can keep Yahoo steady, the board and shareholders should give her $2b a year to acquire companies for the next 10 years. Calacanis points out that Facebook (NASDAQ:FB) bought Instagram for just $1bn (recall that Instagram was recently valued at $35bn via Citi) and Google snatched up YouTube for $1.6bn (the value on this thing is anyone's guess, but it's a good guess that it's worth well more than the purchase price). And it's not just about finding the next YouTube, but also about having the core business and management grow it into the next YouTube. One thing is for sure, the video space is interesting. We covered YHOO almost a year ago when it was trading under $40/share. At the time we noted: Ultimately, a right sizing of the Yahoo ship will lead to stronger traffic and thereby revenue. One way to get this done is with acquisitions. I'd also look for the focus to be on shifting to new ad products and the shoring up of its video capabilities, which is where the Alibaba cash will come in handy. For video, the potential addressable market is large and growing. Yahoo is already making the move to grow its streaming video inventory with differentiated content to offer its existing brand advertising clients a natural outlet for their TV campaigns. Where We StandTo unlock the most immediate shareholder value, YHOO could do a cash rich split of its BABA stake and return that capital to shareholders. Or, an announced buyout of TWTR would likely lead to a spike. But integrating a media company like TWTR, while trying to figure out its own identity, is a fool's game. Rather, for long term value, YHOO should merge with AOL. A YHOO AOL merger might just create a formidable foe in digital ads to Facebook and Google (NASDAQ:GOOG) (NASDAQ:GOOGL). AOL is also already doing something right when it comes to video,air max pas cher Timeline of , effectively leveraging its sub brands (like TechCrunch and Huffington Post). Meanwhile,giuseppe zanotti design Was c, a tax efficient spinoff of its BABA/Yahoo Japan assets would make more sense than a cash rich split that creates a multi billion dollar tax bill. Keep an eye out for what YHOO decides and adjust accordingly. (More.)hogan outlet roma hogan scontate outlet scarpe hogan outlet outlet hogan woolrich outlet online italia pjs giubbotti woolrich outlet peuterey outlet gioielli tiffany outlet tiffany e co outlet tiffany milano bottes ugg pjs pas cher hogan scarpe uomo moncler outlet online 

Posted 10 years ago #

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