Third Point Comments on Yahoo Layoffs
Yahoo! Inc's (NASDAQ: YHOO) layoffs announced today represent the Company's fifth significant headcount reduction in as many years. While this action was unfortunately necessary and widely expected, Third Point, Yahoo!'s largest outside shareholder, is disappointed that this round of cuts occurred before CEO Scott Thompson has articulated his strategic plan for the Company.
A "comprehensive strategic review" of Yahoo! was originally announced by the Board of Directors on September 7, 2011. On Mr. Thompson's first quarterly conference call in January, he stated that he had "some very clear ideas about the specifics of what we'll do, and we're already deeply engaged in this". As he approaches his 100^th day as CEO, shareholders and remaining employees have heard few such specifics. Many of Yahoo!'s senior-level employees and investors have apparently seen enough and heard too little, and have independently staged an exodus, weighing on the company's share price.
Shareholders deserve a management team and board who have a vision and strategic plan. We look forward to hearing from Mr. Thompson and the Legacy Board (including its lame duck members) on what they have in mind. To the extent they genuinely value thoughtful shareholder input, they are encouraged to visit our website, specifically our outline of a strategic plan at www.valueyahoo.com/solutions.
About Third Point LLC: Third Point LLC is an SEC-registered investment adviser headquartered in New York, managing $9.0 billion in assets. Founded in 1995, Third Point follows an event-driven approach to investing globally.
Third Point and the other Participants (defined below) have filed with the Securities and Exchange Commission (the "SEC") a preliminary proxy statement and accompanying proxy card in connection with its solicitation of proxies for the election of Mr. Daniel S. Loeb, Mr. Harry J. Wilson, Mr. Michael J. Wolf and Mr. Jeffrey A. Zucker at the Company's 2012 Annual Meeting of Shareholders (the "Annual Meeting").
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