Tough times behind Yahoo? Not so fast
Key investors are upset that company management is installing its own hand-picked individuals on the board.
A recent Reuters report provides the following reason for the Asian asset sale being put on hold:
"Two people briefed on the situation described the deal as effectively dead in the water -- noting the unreasonable terms sought by Yahoo during talks in Hong Kong and a disconnect between Yahoo's negotiating team and its strategic stakeholders."
The negotiating team mentioned above includes Roy Bostock, who has now decided to step down from Yahoo. Incidentally, a swift exit of incumbent board members is exactly what disgruntled investors like Daniel Loeb have been pushing for.
As cited in the SEC filing by Third Point LLC, Loeb is aggressively pushing for new team members on the board who have relevant experience in technology and media, instead of hand-picked members selected by the previous board. If this happens, a complete revamp in Yahoo's leadership as well as the negotiating team could be imminent. This could bring in the necessary sense of urgency to expedite the sale of Yahoo's Alibaba and Yahoo Japan stakes.
We have a revised price estimate of $17 for Yahoo's stock, which is roughly 12% above the current market price.
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