SpringOwl Activist Presentation Deck
The Starboard Plan
Although Starboard previously advised that Yahoo spin-off its Alibaba stake, it recently suggested maintaining its
Alibaba and Yahoo Japan stakes and, instead, selling its core business:
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"The proposed spin-off of Aabaco Holdings, Inc. ("Aabaco Holdings") is not Yahoo's best alternative.
Instead, you should be exploring a sale of Yahoo's core Search and Display advertising businesses
("Core Business") and leave Yahoo's ownership stakes in Alibaba Group and Yahoo Japan in the
existing corporate entity."
Starboard argues that the market is currently valuing Yahoo's core business at 2.2x trailing Enterprise Value to
EBITDA
...we believe Yahoo should hire a financial advisor to sell the Core Business as a taxable asset sale..."
"We believe the current net cash of Yahoo and the cash generated from the Core Business sale can be
returned to shareholders in a tax efficient manner in some combination of share buybacks, returns of
capital, and dividends."
Source: http://www.prnewswire.com/news-releases/starboard-delivers-letter-to-vahoos-chairman-ceo-and-board-of-directors-300181776.html
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