Peter Chernin has been approached by investors weighing a possible acquisition of Yahoo Inc.
The investor group continues to be interested in buying the portal, which has been the No. 1 website in the U.S. for more than six months and operates the top sites in 12 publishing categories, including finance, news, sports and entertainment lifestyle.
Yahoo's current chief executive, Carol Bartz, has been criticized by investors for her overall business strategy.
As part of their plan, Chernin would play a leading role in Yahoo's management, according to two people familiar with the ongoing discussions. He could be chairman of the board or chief executive.
The former position would make it possible for him to continue running his film and television production operation, which is funded by News Corp.
I think Yahoo is attractive to a PE group that either is from China and is made up of Chinese nationals or a PE group with deep connections in China. I know some big PE shops lost a lot of Chinese nationals who went back to China to start their owns shops. I doubt they have the kind of capital to do a buyout of Yahoo on their own but they may be able to partner with someone else. Ma would prefer to work with Chinese, the PRC would prefer AG be owned by Chinese, and whoever is considering a buyout (if anyone) of Yahoo should consider this very strongly.
At these levels, a buyout is a no-brainer. You have a cash flow machine in the core business that is a top 5 internet destination and has lots of areas for improvement in market share with the right management. Use the Asian assets to get the core business on the cheap and take on leverage with a short payback for the core.
I have a good feeling about this. Now is the time to bring media and entertainment to the masses on the internet worldwide. Chernin is a proven professional who still has an edge. The yahoo stock true book value could be as much AS 3X current prices. It still is a superior brand. So this could be a 6 to 10 bagger once Chernin gets it humming.I think it's worth a shot.
Why don't you give Chernin a call?
At least leave a message with his exec admin.
Perhaps the two of you can do lunch and work out a deal, cause the Yhoo BOD sure couldn't figure out a framework to bring him on board.
Hire him as CEO, or just make him Chairman and let him hire a CEO.
But, if you are waiting for the BOD to move first or for an investor group to make a move, I have a feeling you'll be waiting a long time.
Sometimes you have to take control of an out of control situation.
If you don't grab the Yhoo wheel it is going over the cliff.
That would be fine by me, but all of you longs standing near the guard rail are gonna get hurt.