SpringOwl Activist Presentation Deck slide image

SpringOwl Activist Presentation Deck

Yahoo Makes its Adjusted EBITDA Look Better With the Aid of IP Asset Sales ■ Over the years, Yahoo has struck a number of IP-related sales with Alibaba and Yahoo Japan which it has been recognizing as high margin adjusted EBITDA. If those gains are removed, the profitability of the core business is far less. Yahoo's termination of past partnerships in the next few months (TIPLA Deal, Sales of Patents, and other IP asset Sales) will bring its adjusted EBITDA back to reality this year with virtually no profits left. Source: SpringOwl Asset Management LLC and Company Fillings (10K) SpringOwl! Asset Management LLC $1,122M Projected Adjusted EBITDA 20151 - $199M TIPLA Amortization For 20151 - $253M - Revenue From Yahoo Japan At 100% Margin - $80M Amortization of Other Patents Sales¹ - $400M Stock Compensation $190M Correct Adjusted EBITDA for 2015 $1.5B 2011 -= Drop In Profitability 26% $1.1B Projected 2015 - 87% $190M Correct 2015 Confidential | For Discussion Purposes Only | 66
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