Arab Today, arab today activist firm urges yahoo to cut costs narrow focus
Last Updated : GMT 20:58:07
Arab Today, arab today
Arab Today, arab today

Starboard says core business can be boosted by $11bn

Activist firm urges Yahoo to cut costs, narrow focus

Arab Today, arab today

Arab Today, arab today Activist firm urges Yahoo to cut costs, narrow focus

Yahoo's board and chief executive Marissa Mayer
Washington - Arab Today

Activist investment firm Starboard Value urged Yahoo on Monday to make "aggressive" cost cuts and narrow its focus to deliver more value to shareholders.
In a letter to Yahoo's board and chief executive Marissa Mayer, Starboard said the spinoff of Yahoo's stake in Chinese Internet giant Alibaba was "a good first step" but that more is needed to "unlock" value for shareholders.
The letter from Starboard's managing member Jeffrey Smith said Yahoo "remains deeply undervalued" but that urgent action is needed to shore up the core business of the Internet pioneer.
Yahoo in January announced a plan to create a new unit that would allow it to spin off its Alibaba holdings -- estimated at $40 billion at the time -- in a tax-free transaction.
This deal suggested Yahoo's core business -- excluding its stake in Yahoo Japan -- was worth little or nothing, based on its share value.
But Starboard says the value Yahoo's core business could be boosted by some $11 billion by taking certain steps.
The investment group called for "a tax-free spin-off of the Yahoo Japan stake in a separate entity" and other measures.
The letter said Yahoo should end some of its less profitable endeavors and focus on more promising areas.
"We believe the time has come for Yahoo's management and board to narrow  Yahoo's focus to areas where it can demonstrate a high return on investment and sustainable competitive advantages," the letter said.
"We believe Yahoo's inability to identify significant cost reduction opportunities has been due to Yahoo's current desire to aggressively invest in product areas or other initiatives where Yahoo, in our view, has a low probability of ultimate success."
Other gains could come from licensing some of its patents, or selling some real estate holdings, the letter said.
Smith said Yahoo should return more of the cash from its Alibaba stake to shareholders.
"In our view, shareholders remain extremely concerned about the possible uses of Yahoo's current $5.4 billion in net cash," he wrote.
He said there is "no reason for Yahoo to continue to hold over $5 billion in net cash."
Yahoo has been undergoing a major reorganization since Mayer took the helm in 2012.
Shares in Yahoo fell one percent Monday to $42.98.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today activist firm urges yahoo to cut costs narrow focus Arab Today, arab today activist firm urges yahoo to cut costs narrow focus

 



Arab Today, arab today
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise

GMT 09:55 2017 Monday ,20 February

Thailand 2016 growth up but below junta target

GMT 09:29 2017 Monday ,20 February

Kraft Heinz withdraws bid for Unilever

GMT 09:22 2017 Monday ,20 February

China's huge debt poses big headache for central bank

GMT 18:23 2017 Sunday ,19 February

Darwesh vows to provide job opportunities for youth

GMT 12:10 2017 Sunday ,19 February

Welcomes the F&B solution of the future
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday