Tuesday, February 23, 2016

Yahoo’s Decision to Explore a Sale Exposes a Weak Board - The New York Times

Final paragraphs from a stark Yahoo reality check

"This does not mean that an agreement of the Yahoo board to sell the company is the end of the Yahoo story. Some hedge funds like SpringOwl are likely to oppose a sale as insufficient. Other funds like Starboard are salivating for a sale. Indeed, Starboard is likely to try to unseat the Yahoo board in a proxy contest, if only to make sure the board does not again change its mind and decide not to sell.

So the next fight to come at Yahoo will be whether the company is selling too cheaply.

It all brings to mind a truism on Wall Street, that once you are at the mercy of financial engineers and schemes, it is over. Say good night, Yahoo."
Yahoo’s Decision to Explore a Sale Exposes a Weak Board - The New York Times
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