SpringOwl Activist Presentation Deck

Step Four: Take Headcount Down to 3,000 ▪ Marc Andreessen said on December 6, 2015 that Yahoo is still "dramatically overstaffed" ▪ At present, the company admits it has just under 12,000 full-time employees and fixed term contractors ▪ We suspect that with variable term contractors, this number is much higher ▪ Its annual revenue ex-TAC is around $4 billion Facebook has $15 Billion of revenue in the last year with 11,000 employees Doing Yahoo-like revenue numbers would necessitate 2,900 employees. ▪ Twitter had 3,700 employees and just announced they should fire 300 people because they had become bloated They're doing $2 billion in revenues now ▪ Yahoo grew its headcount significantly in the mid- to late-00s when revenue was exploding ▪ It then added to this headcount even after revenues started contracting ■ ▪ It needs to pull the band-aid off quickly and take headcount down to the appropriate levels given that it should get out of search Source: Spring Owl Asset Management LLC SpringOwl! Asset Management LLC Confidential | For Discussion Purposes Only | 80

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