SpringOwl Activist Presentation Deck
Key Drivers to Unlocking Value In Yahoo's Share Price
($B Unless Noted)
How Yahoo Is Valued By
The Market Today
(Asian Stakes Taxed at 38%)
EL.
Alibaba Group
YAHOO!
JAPAN
CASH
REAL
ESTATE
CORE
20.4
5.3
SpringOwl!
Asset Management LLC
5.5
0
2.8
Mkt Cap
33.9
PER SHARE $35.91
Extra Value Created By
Starboard's Plan
EL.
Alibaba Group
YAHOO!
JAPAN
CASH
REAL
ESTATE
20.4
5.3
5.5
0
CORE
6
Mkt Cap
37.2
PER SHARE $39.41
Our Plan
E2.
Alibaba Group
YAHOO!
JAPAN
CASH
REAL
ESTATE
CORE
46.1¹
9.61
1.5
1.8²
24
Mkt Cap
81.2
PER SHARE $113.41
Difference Between
Starboard and Our
Plan
=
25.7
4.3
1.8²
18
44
$61.45
$4B Cash
$1.8B Real
Estate
$4B Debt
Can Retire
228M Shares
At $43/Share
New Share
Count:
716M Shares
If our plan is implemented by the company and just the core busin ess is fixed (with no additional improvement in the value of the Alibaba and
stakes), we believe that Yahoo's stock would trade about $60/share or more than $30/share higher than the plan advocated by Starboard.
Source: Spring Owl Asset Management LLC
Confidential | For Discussion Purposes Only | 75
Note: 1. Although Real Estate value is being realized, it is being used to retire shares.
2. Through working with a Liberty-like partner to realize tax efficiencies with BABA returning to $120/share and YJ increasing in value by 12%View entire presentation