For Yahoo’s (NASDAQ: YHOO) board, a proxy fight to oust the entire management team may finally have it feeling the heat. This indicates a faster solution for shareholders.
Now, the Web giant sets a deadline on April 11 for all potential buyers to submit preliminary bids for its core business and its stakes in Yahoo Japan and Alibaba Group Holdings (NYSE: BABA). Prospect bidders also would need to provide details on financing, conditions for approval and assumptions, including plans to separate the core business from the Asian assets if necessary.
Verizon Communications, Time, and IAC are among the potential buyers that Yahoo's investment bankers have contacted regarding a potential bid. The company seeks to reduce the entrants from 40 parties and finds out what are the serious buyers.
Microsoft is thinking on acquiring Yahoo assets. This moves makes sense. Given the fact that the Microsoft has a search partnership with Yahoo and it’s likely that the Microsoft wants to retain it.
The current management team in the Web company moved from its previous position to pursue the sale of its core assets. The core assets incorporate search, email, and Web properties, such as Yahoo Sports and Yahoo Finance. The move shows a concession from the pressure of activist shareholder Starboard Value. It’s also a response to the launch of the proxy fight. In launching its proxy contest, Starboard said, "Yahoo's current board has failed to deliver results for shareholders," Starboard stated in launching its proxy contest. "Significant board change is desperately needed to hold management accountable and properly oversee any operational turnaround plan, separation, or sale of assets." In Starboard’s earlier demands, there are mainly two appeals establishing a committee to explore strategic options for the company, reversing a plan to separate its stake in Alibaba and announcing cost cuts.
Yahoo’s latest move responded to the criticism. Shareholders and Investors should keep holding its feet to the fire until the actual results come.