Yahoo! forms committee to look at 'strategic alternatives'

News Broadband Global 19 FEB 2016
Yahoo! forms committee to look at 'strategic alternatives'
Yahoo! has given further details of the announcement at its 2015 financial results that it will consider "strategic alternatives" alongside the proposed reverse spin-off of its stake in Alibaba Group. The company's board has formed a Strategic Review Committee of independent directors to lead the effort, with the assistance and support of management. The committee hired Goldman Sachs, JP Morgan and PJT Partners as its financial advisors, and Cravath, Swaine & Moore as its legal advisor. After contacting potentially interested strategic and financial parties, the committee will recommend to the board whether any proposed transaction is in the best interests of the company and its shareholders. 

Yahoo chairman Maynard Webb said in a statement that the board was "thoroughly" committed to exploring strategic alternatives, while simultaneously supporting Yahoo's management in executing its strategic plan. CEO Marissa Mayer added that separating the Alibaba stake was "essential to maximizing value for our shareholders" and there are "strategic alternatives that could help us achieve the separation, while strengthening our business". 

Yahoo said it would not comment further until a definitive transaction agreement is reached or the company decided against pursuing such a deal. The decision to look at alternatives follows difficulties realising the Alibaba spin-off as well as continued weakness and restructuring in the company's core business. Shareholders and investors such as Starhome are putting increasing pressure on Yahoo to come up with plans to maximise the value of its assets. 

 

Categories:

Internet

Companies:

Yahoo!,  Alibaba

Regions:

Global

Tags:

Data services, Messaging, Portals / social media, Advertising services, Corporate strategy, M&A buyouts & divestments

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