As Yahoo’s global online ad revenue is forecast to drop by 14 percent this year, and scrutiny of the embattled Internet company’s leadership continues, Starboard Value has initiated a shareholder revolt. Yesterday, in a letter to investors, the activist hedge fund introduced nine candidates to run for the Yahoo board (including Starboard chief exec Jeffrey Smith). Starboard, which holds a 1.7 percent stake in Yahoo, has called into question the leadership of Yahoo CEO Marissa Mayer and is looking to oust the company’s current board. Starboard hopes that such pressure will encourage the sale of Yahoo’s core businesses. Continue reading Starboard Suggests Replacements for Yahoo Board Members

Yahoo’s chief executive Marissa Mayer is on a path to revive Yahoo by spinning off core assets, possibly ending the company’s existence as an independent entity. One thing is certain: the company is going to get smaller. On Tuesday, Yahoo said it would lay off 15 percent of its 11,000-person staff, ultimately making the workforce 42 percent smaller than it was in 2012, when Mayer took over the reins as chief executive. Although she counsels shareholders to be patient, activist investors may try to elect a new board. Continue reading Yahoo CEO Spinning Off Core Assets to Save Ailing Company

Yahoo has abandoned its plans to sell its $31 billion stake in Chinese e-commerce company Alibaba, reportedly due to tax concerns. Instead, Yahoo’s board of directors has decided to sell off other company assets. According to the press release: “In the reverse spin off, Yahoo’s assets and liabilities other than the Alibaba stake would be transferred to a newly formed company, the stock of which would be distributed pro rata to Yahoo shareholders resulting in two separate publicly-traded companies.” The company notes the deal could take up to a year or more. Re/code suggests that “Yahoo’s plan to spin off Yahoo will also be a plan to sell off Yahoo.” Continue reading Yahoo Announces it No Longer Plans Spin Off of Alibaba Stake

Hewlett-Packard reportedly plans to split its company into two parts, separating its personal computer and printer businesses from its corporate hardware and services operations. According to insiders, the company is expected to outline the plans today. A number of large companies have recently split, in an effort to better mange different growth profiles. The anticipated HP division could result in two publicly traded companies, with each entity worth in excess of $50 billion in annual revenue. Continue reading HP to Split PC, Printer Ops from Corporate Hardware, Services

Dish Network has received signed commitment letters from five banks, according to people familiar with the matter, bringing it closer to arranging $9 billion in committed financing for a planned $25.5 billion acquisition bid for Sprint Nextel. Dish has raised nearly $12 billion for the deal, which will compete with October’s $20.1 billion offer by SoftBank to acquire 70 percent of Sprint. The financing arrives a few days after Sprint agreed to enter into negotiations with Dish. Continue reading Dish Goes Up Against SoftBank to Purchase Sprint Nextel