Yahoo! Inc's 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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