Arab Today, arab today activist investor urges yahooaol tieup
Last Updated : GMT 07:27:18
Arab Today, arab today
Arab Today, arab today

Activist investor urges Yahoo-AOL tie-up

Arab Today, arab today

Arab Today, arab today Activist investor urges Yahoo-AOL tie-up

Yahoo! headquarters
New York - AFP

An activist investment firm Friday urged Yahoo to explore a tie-up with online rival AOL, saying such a deal could help the struggling Internet pioneer "unlock" value for shareholders.
Starboard Value LP, which said it had acquired a "significant" ownership interest in the company, said in an open later to Yahoo chief Marissa Mayer that bringing together the two early Internet giants could lead to "up to $1 billion of synergies" and lift the value of Yahoo as it divests a large portion of its stake in Chinese online group Alibaba.
Silicon Valley-based Yahoo acknowledged it received the letter from Starboard and said that it intends to act in the best interest of the company.
"We have maintained, and will continue to maintain, an open dialogue with all of our shareholders," Mayer said in a released statement.
"As part of our regular evaluation of Yahoo's strategic initiatives to drive sustainable shareholder value, we will review Starboard's letter carefully and look forward to discussing it with them."
Starboard's move comes amid intense scrutiny over Yahoo, which like AOL is pushing heavily in digital media as part of reorganization efforts.
Starboard said that the value of Yahoo's core business as measured by its share price is virtually nil, when excluding the valuation of its holdings in Alibaba and Yahoo Japan.
Starboard's analysis said Yahoo's Alibaba stake is worth $34 billion and its holdings in Yahoo Japan valued at $7.8 billion.
With Yahoo's $8.6 billion cash stockpile, its enterprise value should be worth roughly $50 billion, but its market capitalization determined by its share price is just $39 billion, according to Starboard, leaving an $11 billion "valuation gap."
The investment firm said the reason for the gap is that Yahoo has poorly managed both its asset sales and investments, by pursuing a strategy of buying up startups "at massive valuations with seemingly little to no regard for profitability and return on capital."
- End acquisition strategy? -
The most prominent investment by Yahoo was its $1.1 billion deal for the blogging platform Tumblr, which aims at reaching a younger audience.
Starboard said Yahoo should end its "aggressive acquisition strategy" which has spent some $1.3 billion, cut costs and find ways to get value from its overseas holdings with minimal tax consequences.
And it said a tie-up with AOL would be logical because the two firms have a lot of overlap in areas such as online media and advertising.
"Based on our analysis, we believe that a combination of Yahoo and AOL could offer synergies of up to $1 billion by significantly reducing the cost overlaps in their display advertising businesses as well as synergies in corporate overhead," the letter said.
"Importantly, we believe the combined entity would be able to more successfully navigate the ongoing industry changes, such as the growth of programmatic advertising and migration to mobile."
Yahoo shares rose 4.4 percent on the news to close at $40.66.
It is not the first time Yahoo has faced pressure from shareholders.
In 2012, a hedge fund pressed for the ouster of then-chief executive Scott Thompson. And prior to that, billionaire Carl Icahn pressed for a shakeup after Yahoo rejected a takeover bid from Microsoft.
Starboard in 2012 urged changes at AOL, saying the company "remains closed-minded to alternative value creation initiatives."
AOL, formerly known as America Online, has been struggling since the collapse of its leadership as an Internet subscription service, and has been seeking to become a more diversified Web firm. It was spun off from Time Warner in 2009, undoing an unsuccessful 2001 merger.

 

arabstoday
arabstoday

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 investor urges yahooaol tieup Arab Today, arab today activist investor urges yahooaol tieup

 



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 investor urges yahooaol tieup Arab Today, arab today activist investor urges yahooaol tieup

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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