The hedge fund is seeking to replace all nine members of Yahoo’s board of directors, including Mayer, at the company’s next shareholders meeting, which will likely be in June.
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For people unfamiliar with the matter, Yahoo has been under pressure from shareholders for some time now to sell its core business after the company failed to revive its business under the leadership of current CEO Merissa Mayer who took charge in 2012. That would leave Yahoo as a holding company with valuable stakes in China’s e-commerce leader, Alibaba Group Holding Ltd (阿里巴巴), and Yahoo Japan.
A preliminary deadline for offers reportedly passed on Monday, and the status of bidding for Yahoo’s core business was expected to be among questions fielded by chief executive Marissa Mayer during a briefing.
Yahoo’s management team is meeting every day with advisers and a special board committee as the company explores “strategic alternatives” that involve everything from selling the company to spinning off the business, CEO Marissa Mayer said on Tuesday.
Yahoo’s second quarter outlook also was dim. Yahoo expects revenue after subtracting the cost of traffic acquisition – the metric Wall Street likes to track – will range from $810 million to $850 million, below analysts’ estimates of $860 million and a decline of 17% from $1.04 billion in the second quarter past year.
If you include the items for a net income basis, or GAAP, Yahoo’s net was -$0.10 in earnings per share (or $99.2 million) – versus a gain of $0.02 EPS past year (or $21 million). Effectively, that means the stock market has valued Yahoo’s core Internet business as worthless.
Daily Mail and General Trust, the parent group behind British tabloid Daily Mail, revealed last week that it was in talks with “a number of parties” over a potential bid for Yahoo, but it is unclear whether the negotiations resulted in an offer.
After deducting fees it paid to partner websites, Yahoo’s revenue fell to $859.4m from $1.04bn during this period.
In February, Yahoo said it was cutting 15 percent of its workforce and narrowing its focus as it explored “strategic alternatives”.
“We want to settle”, Smith said. Its pre-earnings consensus analyst target was $38.82. For the year, Yahoo shares have risen by 11 percent.
Verizon Communications Inc has publicly said it is interested in buying Yahoo.
Yahoo shares rose nearly 1 percent to $36.59 in after-hours trading following the release of the company’s quarterly results.
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Yahoo, a leading content portal in the early days of the Web, missed the shift to mobile devices and has been struggling to compete against Google, Facebook and specialty apps for advertising dollars and user loyalty.
