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Yahoo!- Are the Parts Greater than the Sum?
Abstract
In July 2016, Yahoo! announced the sale of its core assets to Verizon for $4.8 billion (all-cash deal). The sales proceedings would take around 6-9 months, leaving Yahoo stakeholders with Alibaba and Yahoo! Japan stakes of $41 billion. The case describes the events which led to the sale of Yahoo’s core assets and the attempts made by its management to revive it before the sale. The case also describes the propositions of activist shareholders to revive Yahoo! |
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Issues
The case is structured to achieve the following teaching objectives:
- Reviving Yahoo! as well as creating shareholder’s value by selling the Alibaba and Yahoo! Japan stakes with a tax efficient plan.
- Sell Yahoo! core or recover considering the propositions given by activist shareholders.
| Contents |
| INTRODUCTION |
| BACKDROP |
| MARISSA’S MANEUVERS |
| MAXIMIZING SHAREHOLDER VALUE |
| STARBOARD’S PROPOSITION |
| SPRING OWL PROPOSITION |
| THE RECOURSE |
| EXHIBITS |
Keywords
Internet, Yahoo!, Valuation, Turnaround, Shareholders, Spin-off, Verizon
