Yahoo committee will explore sale
SUNNYVALE, Calif. — As investor pressure intensifies — and amid talk of a possible proxy fight — Yahoo on Friday gave additional information about its exploration of strategic initiatives.
Among the details revealed, the Sunnyvalebased company said it has formed an independent committee to talk to possible buyers.
Investors have been impatient with Yahoo’s plans to turn around the company and have called for replacing CEO Marissa Mayer, spinning off the company’s Alibaba stake and selling the core Internet business. In Decem- ber, however, Chairman Maynard Webb insisted that the company was not for sale. Investors were not pleased and called for immediate action.
By the time the company announced financial results earlier this month, Yahoo said it would pursue strategic alternatives, reduce its workforce — it cut hundreds of jobs this week — and continue to try to make improvements in its Internet business by narrowing its focus.
“As both shareholders and employees, all of us here at Yahoo want to return this iconic company to greatness,” Mayer said in a news release Friday. “We can best achieve this by working with the committee to pursue various stra- tegic alternatives while, in parallel, aggressively executing our strategic plan to strengthen our growth businesses and improve efficiency and profitability.” She again mentioned the importance of spinning off the company’s nearly $40 billion Alibaba stake.
Eric Jackson, director for SpringOwl Asset Management, said Yahoo may have acted too late in showing that it’s serious about strategic alternatives, such as a sale or a big investment from another company.
Among the companies that have expressed interest in buying Yahoo is Verizon. News Corp. and IAC/ InterActiveCorp, as well as private-equity firm TPG, are also reportedly interested.