Investors pressure Yahoo to cut jobs, appoint new CEO and sell business
It is reported that the investors lost paitience for CEO Mayer's turnaround plan. It faces new pressures from its investors.
As the 15th shareholder of Yahoo, Canyon Capital Advisors wrote to Yahoo last Friday to urge it seeked for buyers for its core internet business or the whole company.
The other investor, SpringOwl Asset Management company suggested Yahoo cut 75% of its workforce and look for competent CEO or strategic partners who help Yahoo out of taxation trouble.
It lay aside alibaba share split plan due to the potential tax risk and turned to discuss the split off plan of Yahoo core internet business. If the plan continues, it will spend one year to complete and it will delay the plan for the turnaround plan.
Mayer claimed on last Wednesday that she would report more details concern the reorganization plan next month. Its share price decreased by 5.6% since last Wednesday.
SpringOwl's general manager Eric Jackson said:"I don't agree the idea that Yahoo is hopeless." SpringOwl manages about $300 million capital, including the unrevealed Yahoo shares.
Jackson suggested that Yahoo cut 9,000 jobs from 11,900 staffs and contactors, cancle free food welfare and sell Yahoo's headquarter. It could save about $2 billion for Yahoo each year.
The investors asked for reorganizing the management group and looked for new CEO. Jackson felt Liberty Media is an ideal cooperative partner.
If it sells its core business, Yahoo might get about $6 billion capital. With the cuts of expense and profitable ability, Yahoo might be sold at $24 billion.
SpringOwl is not the biggest shareholder of Yahoo. Jackson claimed that he met with some other shareholders in order to get support to pressure Yahoo.
Canyon Capital Advisors and Starboard Value both hope to seek buyers for Yahoo.
Maynard Webb told the investors last week, the board of directors of Yahoo did not approve to sell Yahoo yet. Webb said the board of directors will think about the acquired offers.