Yahoo forms committee to explore options of possible sale
After a disappointing fourth quarter results, Yahoo’s CEO Marissa Mayer highlighted a ‘strategic plan’ for the company ahead. As the company released further details of the plan, it looks like the company is exploring options for a possible sale of its core business. A press statement highlighted that its Board of Directors is exploring strategic alternatives alongside its continued consideration of a reverse spin.
The Board has now formed a Strategic Review Committee of independent directors to lead this effort. Goldman Sachs & Co. Inc., J.P. Morgan and PJT Partners Inc. have been engaged as the Committee’s financial advisors, and Cravath, Swaine & Moore LLP as its legal advisor.
“The Strategic Review Committee and its advisors are establishing a process for outreach to and engagement with potentially interested strategic and financial parties. The Strategic Review Committee will recommend to the Board whether any proposed transaction is in the best interests of the Company and its shareholders,” a press statement highlighted.
This move comes after the struggling tech company said on February 3, 2016 that it plans to reduce its workforce by roughly 15 per cent this year and shut down offices in Dubai, Mexico City, Buenos Aires, Madrid, and Milan.
“The Board recently formed an independent committee to conduct a process to evaluate strategic alternatives for the company. We have hired excellent advisors and are working closely and in alignment with management to pursue an effective process. The Board is thoroughly committed to exploring strategic alternatives while simultaneously supporting management and the employees in their implementation of Yahoo’s strategic plan. We believe that pursuing these complementary paths is in the best interests of our shareholders and will maximise value,” said Maynard Webb, Yahoo’s Chairman of the Board.
“Separating our Alibaba stake from Yahoo’s operating business is essential to maximizing value for our shareholders. In addition to the reverse spin, there are strategic alternatives that could help us achieve the separation, while strengthening our business. As both shareholders and employees, all of us here at Yahoo want to return this iconic company to greatness. We can best achieve this by working with the committee to pursue various strategic alternatives while, in parallel, aggressively executing our strategic plan to strengthen our growth businesses and improve efficiency and profitability,” said Marissa Mayer, CEO of Yahoo.
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