(Reuters) - Yahoo Inc's new interim chief executive is a signal to Wall Street that the company is returning to a media-centric strategy, even as the its weekend deal with activist hedge fund Third Point raises new questions about its future.
Yahoo Inc's new interim chief executive is a signal to Wall Street that the company is returning to a media-centric strategy, even as the its weekend deal with activist hedge fund Third Point raises new ...
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It keeps getting worse for Yahoo.
Faltering Internet giant Yahoo! Inc. (NASDAQ:YHOO) faces the wrath of agitated investors these days, as investor dissent gained momentum since last week, when the company announced to scrap its plans to spin off Alibaba stock from its portfolio. In order to push the company to improve its declining financials, investors urge it to sell its core Internet business, find a substitute for CEO Marissa Mayer as she fails to make progress on the turnaround plan, and cut workforce.
Apparently, Yahoo’s stake in the Chinese e-commerce powerhouse,Alibaba Holdings (NYSE:BABA) is not the only thing in question anymore. According to The Wall Street Journal, Yahoo’s board of directors is planning to have a series of meetings this week to decide whether to spin-off the company’s core Internet business, and what to do with its Alibaba stake.
Yahoo! Inc. (NASDAQ:YHOO) is under pressure from activist hedge fund Starboard Value LP, that has urged the company to stop focusing too much on selling off its Alibaba stake. According to Starboard, Yahoo would be better off selling some of its core internet business instead.
Activist investing is up — way up — and that has been great news for Wall Street’s top investment banks. Hedge fund managers that agitate for changes at public companies, asking for everything from bigger dividends to outright sales, have grown their war chests, been taking on more targets, and had larger victories than ever.
Nearly three years ago I wrote a bullish article on Yahoo (YHOO) after ex-Google exec Marissa Mayer took over as CEO, with the stock at $16 per share (Does Marissa Mayer Make Yahoo Stock A Worthwhile Bet?). After the stock had doubled a year later I postulated that it was fairly valued, but for a while now I have moved back into the bullish camp.
US stocks fell in early trading on Monday after Greeks overwhelmingly rejected conditions of a rescue package from creditors, throwing the future of the country's euro zone membership into further doubt. Stock markets globally fell, but analysts said the declines were less than expected due to expectations that the European Central Bank would act to limit any damage. The ECB's governing council is due to hold a conference call on Monday afternoon to discuss the provision of emergency funding to Greece's banks. The call was originally to be held at noon.