SpringOwl Activist Presentation Deck
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Step Six: End All Search Investment, Write Off Mayer
M&A, Cut Product Development Budget Dramatically
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After 4 years of wasted investment and nothing to show for it, Mayer has recently promised to make a major
investment in reinventing mobile search
It's another maddeningly wasteful use of shareholders' cash
▪ There's a very low probability that Yahoo is going to recreate how people search on a mobile device
Google and Bing have won that war; Yahoo lost
It would be nice if history had gone differently for Yahoo, but it didn't; and we all must live in reality now
▪ The next CEO should focus on:
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Laying off all Yahoo staff trying to create a new type of search and simply relying on Yahoo outsourced search
deals with Bing and to some extent Google
Writing off Mayer's $3 billion in misguided M&A – According to Mayer and Goldman, it's beneficial to Yahoo to
write off $42 million for content shows; therefore, it must be 72x more beneficial to Yahoo to write off $3 billion of
worthless M&A
Mayer has increased product development costs significantly during her tenure and she's now spent $4 billion
total over her tenure - but for what?
Source: Spring Owl Asset Management LLC
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