Arab Today, arab today activist firm urges yahoo to cut costs narrow focus
Last Updated : GMT 00:58:51
Arab Today, arab today
Arab Today, arab today

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

Activist investment firm Starboard Value urges Yahoo to make 'aggressive' cost cuts
Washington - AFP

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.

 

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 Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
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 Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
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 11:47 2017 Wednesday ,22 February

Toshiba skyrockets over 22% on chip unit sale hopes

GMT 11:31 2017 Wednesday ,22 February

Bayer says Monsanto deal on track, eyes record 2017

GMT 10:49 2017 Wednesday ,22 February

Airbus says profits hit by military plane woes

GMT 06:43 2017 Wednesday ,22 February

LuLu festival offers a taste of Egypt

GMT 06:11 2017 Wednesday ,22 February

Russia’s Rosneft, Libya’s NOC sign oil offtake deal

GMT 05:49 2017 Wednesday ,22 February

‘PSA to honor Opel job guarantees’

GMT 05:41 2017 Wednesday ,22 February

BHP to Trump: Protectionism will hurt growth
View News in Arabic - Business: أخبار الشركات
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 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
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 Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

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