Tag Archives: yhoo

Yahoo Reportedly Selling Huge Silicon Valley Site To Chinese Firm

Yahoo ( YHOO )  has reached a deal to sell a 48.6-acre undeveloped site in Santa Clara, Calif.,  near the heart of Silicon Valley and four miles from the company’s Sunnyvale headquarters, to Chinese tech firm LeEco, according to the Silicon Valley Business Journal . Yahoo has said that as part of its restructuring efforts it might sell real estate, and the Business Journal reported in December that Yahoo was shopping the site. The deal has not yet closed, says the report. The purchase indicates big growth plans for LeEco, hich makes phones, TVs, mountain bikes and soon electric cars, according to the report. The Web portal paid $106 million for the land in 2006, back when Yahoo’s revenue was still growing and the property was seen as having the potential to accommodate more than 12,000 workers, according to the report. The site is near the $1.3 billion Levi’s Stadium, home of the San Francisco 49ers football team and site of last February’s Super Bowl. Yahoo received approval to build up to 3 million square feet of office or research and development space on the site, in 13 buildings, but never began construction. SunTrust Robinson Humphrey said in an industry report  this month that Yahoo owns more than 1 million square feet of building space and that its real estate could be worth $1 billion. Yahoo stock closed up 1 cent at 36.60 on the  stock market today . Yahoo stock has more than doubled since the company hired Marissa Mayer, who had been a top executive at Alphabet ( GOOGL ) unit Google, as CEO in July 2012. But she’s been unable to spark significant earnings and revenue growth, and Yahoo has struggled to build online-ad and mobile-ad revenue vs. rivals Google and Facebook ( FB ), among others. Yahoo last week reported Q1 earnings and revenue that topped Wall Street expectations, but its Q2 revenue outlook lagged analyst expectations. For Q2, the company forecast revenue of $1.05 billion to $1.09 billion, down 14% at the midpoint and below consensus views of $1.102 billion. Yahoo reportedly had set a deadline of April 18 for bids by potential acquirers, with Verizon Communications ( VZ ), which owns AOL, rumored to be among the most active bidders.  Mayer has said only that progress is being made. On Wednesday, in what Mayer called a “constructive resolution,” the troubled Web portal announced it reached an agreement with activist investor Starboard Value to add four new independent directors to the company’s board. In March, Starboard proposed replacing Yahoo’s entire nine-member board with its own slate, saying Yahoo’s current management team and board had “repeatedly failed shareholders” and shouldn’t be in charge of a strategic review of Yahoo’s core search and display ad business or determine the fate of Yahoo’s 15% stake in China e-commerce giant Alibaba ( BABA ) and its holdings in Yahoo Japan. Under the agreement announced Wednesday, Starboard has withdrawn its director nominees. Instead, Yahoo will add four independent directors, including Starboard CEO and Chief Investment Officer Jeffrey Smith.

Yahoo, Starboard Value Call A Truce, Agree To Four New Directors

In what Yahoo ( YHOO ) CEO Marissa Mayer called a “constructive resolution,” the troubled Web portal announced Wednesday that it had reached an agreement with activist investor Starboard Value to add four new independent directors to the company’s board. In March, Starboard had proposed replacing Yahoo’s entire nine-member board with its own slate, saying Yahoo’s current management team and board had “repeatedly failed shareholders” and shouldn’t be in charge of a strategic review of Yahoo’s core search and display ad business or determine the fate of Yahoo’s 15% stake in China e-commerce giant Alibaba Group ( BABA ) and its holdings in Yahoo Japan. Under the agreement announced Wednesday, Starboard has withdrawn its director nominees. Instead, Yahoo will add four new independent directors, including Starboard CEO and Chief Investment Officer Jeffrey Smith. Also joining the Yahoo board are Tor Braham, a former managing director and global head of technology mergers and acquisitions for Deutsche Bank Securities; media executive Eddy Hartenstein; and Richard Hill, the former interim CEO of Tessera Technologies ( TSRA ). At the company’s upcoming annual meeting, two incumbent directors will not stand for re-election, giving Yahoo an 11-member board going forward, the company said. “This constructive resolution will allow management and the board to keep our focus on our extremely important objectives,” Mayer said in a statement. Starboard’s Smith said, “We look forward to getting started right away and working closely with management and our fellow board members with the common goal of maximizing value for all shareholders.” Yahoo is in the process of evaluating buyout offers. Yahoo stock has more than doubled since Mayer, who had been a top executive at Alphabet ‘s ( ) Google, was hired as CEO in July 2012. But she’s been unable to spark significant earnings and revenue growth, and Yahoo has struggled to build online- and mobile-ad revenue vs. rivals Google, Facebook ( FB ) and others. Yahoo stock was down 1% in midday trading in the stock market today , near 37, down 18% in the past 12 months but up 40% since early February in anticipation of a sale. Last week, Yahoo gave no specifics on its efforts to find a buyer for its core business and perhaps its big stakes in Alibaba and Yahoo Japan. Most of Yahoo’s value comes from its Alibaba stake. Yahoo’s total market cap is near $34.8 billion. Yahoo last week reported Q1 earnings and revenue that topped Wall Street expectations, but its Q2 revenue outlook lagged analyst expectations. For Q2, the company forecast revenue of $1.05 billion to $1.09 billion, down 14% at the midpoint and below consensus views of $1.102 billion. Yahoo had reportedly had set a deadline of April 18 for bids by potential acquirers, with Verizon Communications ( VZ ), which owns AOL, rumored to be among the most active bidders. For Q2, Yahoo forecast revenue of $1.05 billion to $1.09 billion, down 14% at the midpoint and lagging consensus views of $1.102 billion. Alibaba stock was down nearly 2% midday Wednesday, near 77, while Verizon stock was up nearly 2%, near 51.

Yahoo To Add 4 Independent Directors In Deal With Starboard

Yahoo ( YHOO ) has reached a deal with Starboard Value to name four independent directors  while the hedge fund ends its bid to replace the entire board of the ailing web giant. Under the terms of the agreement, Starboard has withdrawn its Yahoo board nominees. Former Deutsche Bank Securities M&A head Tor Braham, media exec Eddy Hartenstein, Tessera Technologies ( TSRA ) chairman Richard Hill, and Starboard CEO and Chief Investment Officer Jeffrey Smith will become board members, effectively immediately, said Yahoo in a statement. Current directors Lee Scott and Sue James will not stand for re-election at the company’s annual meeting to allow for an 11-member board. “This constructive resolution will allow management and the board to keep our focus on our extremely important objectives,” said Yahoo CEO Marissa Mayer in the statement. Starboard had late last year pressured the Internet heavyweight to nix its Alibaba ( BABA ) spinoff, then in March issued a letter to Yahoo shareholders, telling them it was “extremely disappointed” with the company’s “dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the Board.” Under pressure from Starboard, Yahoo has accepted bids for all or part of the company. Verizon ( VZ ) is seen as a lead suitor in the first round of bids. Yahoo stock fell fractionally soon after the opening bell on the stock market today . Separately,  Marvell Technology ( MRVL ) agreed to add five directors, giving in to demands from Starboard Value. Starboard took a 6.7% stake in Marvell in February. Marvell Technology stock rose 1.4% to 10.10.