Yahoo ‘Rejects’ Offers For Internet Business
Sources claim Yahoo will reveal its next strategic moves on 2 February, the day of its quarterly earnings call
Yahoo will keep its next strategic moves under wraps until 2 February, the day of the company’s next quarterly earnings call, according to Reuters.
Whilst rumours have been in the pipeline for months now regarding a sale of Yahoo’s core internet business, the news agency said that several potential buyers have actually been turned away by Yahoo.
The reason for the delay? Yahoo wants to measure shareholder reaction to the next quarterly earnings, alongside Yahoo having prepared a ‘strategic vision’ that it wants shareholders to hear, one of the sources said.
TechWeekEurope has contacted Yahoo, but had not yet received comment at the time of publication.
Alibaba
It was last December when Yahoo announced that the company won’t be spinning off its holdings in Alibaba.
According to Yahoo’s board of directors, the decision came after consideration of how to best drive long-term value for its shareholders.
Known as the Aabaco spin off, Maynard Webb, chairman of Yahoo’s board, said: “In consideration of developments since the original spin off plan was announced and after significant deliberations, we are suspending work on the Aabaco spin off. Among other factors, we were concerned about the market’s perception of tax risk, which would have impaired the value of Aabaco stock until resolved.”
Instead, Yahoo decided to spin off other elements of its business, including Yahoo Japan, into a new holding company.
However, investors are eager for a total sale of the Yahoo’s internet business, a business that includes Yahoo’s search and display ads divisions.
But Reuters reported that investors Canyon Capital Advisors and Mason Capital have been urging Yahoo to sell up, along with Starboard investors pushing ever more aggressively.
Yahoo will have a window of one month to elect board members at the end of February, and Starboard has said in its most recent letters to the board it may be prepared to start a proxy contest, said Reuters.
