IMO, bad earnings can be a blessing in disguise as weird as this sounds, it will be the end of the MM learning & experiment time window, and mark the start of the next phase of yahoo, i.e. to expedite the actions of spinoffs, return cash to shareholders.
For the current MM plans to continue, the earning has to be marked better than expected, guidance too.
I hate the aqui-hire small time moves, they have not served any strategic purposes and made a dent ROI wise, other than adding head counts, costs, integration chaos. More importantly the wasted internet time, energy and window of opportunities.
YHOO needs to slim down, not just the CEO's waist-line that she probably spends most of her time each day.
IMO, the business improvement under her leadership has been marginal at best for the last two years, in internet space it is a long time; the COO hire/fire was a total fiasco;
More importantly, while she is out there polishing her media images, YHOO management did not heed the right calls to shed dead meat, re-org to run its biz more efficiently. Not sure she will be the right CEO for this and all those.
I have been wondering about the same $15b savings too? Has anybody in the media bother to ask how $15b can be saved, for who? Time for Starboasts to come out with some credible blueprints now, or they can go away smoking weeds with Eric Jackson.
Just a follow-up question: What if the spun-off, say YHK, gets bought out by either BABA or SFTBY? Will YHK's BABA and/or YJ shares be transfered tax-free?
Sorry not available, I am busy, along with MM, selling my own stock options. -- Ken G's answer machine.
I heard it frequently mentioned recently in connection of YHOO BABA asset and today Carl Icahn in his PayPal spinoff statement also mentioned it, his quote: " ... either through acquisitions made by PayPal or a merger between PayPal and another strong player in the industry. It is possible that this could be accomplished through a reverse Morris Trust structure ..."
Here is the wikipedia article explaining (much better than me): http://en.wikipedia.org/wiki/Reverse_Morris_Trust
John Malone used it before.
You can bet thousands of return-hungry Hedgies and PEs (they too will have to answer to their investors) are always on the hunt for value, fill gaps wherever they maybe, certainly will do with YHOO.
I see a lot of merits in this combination, especially the way Starboard suggested.
1. Tim Armstrong IMO is a much stronger and effective leader than MM, I hope he replaces MM at the end, in the meantime you can still call him a jerk, but he gets the tough job done;
2. Unfortunately, yet so necessary, this is the only opportunity to quickly realize huge cost savings;
3. The result of the combination and subsequently cost cutting and re-org will better position the company to be acquired or partners with BABA, etc.
As much as I hope BABA will put a good offer on the table, I doubt it will happen soon, not if YHOO mgmt does not nothing about the bloated payroll, Jack Ma does not want to be the bad guy to have to axe so many employees right after the acquisition.
BABA buying YHOO seems to make a lot more sense now, YHOO's global brand name, reach, scale, advertising experience fit BABA's global expansion ambition very well. Note that BABA's is more of an e-commerce/advertisement platform unlike AMZN, so does YHOO sans e-commerce.
Jerry Yang being one of the BABA partners does not hurt :-)
He could have held on that position until recently and made a lot more, just saying :-)
But seriously, him being in again is not bad at all
Today was a bad day for a lot of stocks, lots of selling, not just YHOO, Softbank was even worse. It comes down to BABA performance, I believe long term it will out-perform the market, YHOO as a proxy will benefit accordingly.