Market Overview

Bloomberg's Tom Giles Says Yahoo's Agreement With Activist Investor 'Buys Time' For Marissa Mayer


Shares of Yahoo! Inc. (NASDAQ: YHOO) were trading lower by more than 1 percent on Wednesday after the company reached an agreement with activist investor and major shareholder Starboard Value.

CNBC's Jim Cramer said that the agreement is a positive, and Yahoo's business will no longer be in "disarray."

Related Link: Jim Cramer Suggests Yahoo No Longer In 'Disarray' After Reaching Agreement With Starboard

Bloomberg's Tom Giles shared a somewhat different perspective of the agreement.

According to Giles, Yahoo's agreement with Starboard is "somewhat of a victory" for the company's CEO Marissa Mayer as she gets to "keep her job – at least for now."

"Starboard was coming in, guns-a-blazing, they wanted to replace the entire board, including Marissa," Giles said during Wednesday's "Bloomberg Markets" segment. "At least now she gets to have a say in the fate of the company."

Giles continued that the credentials of Yahoo's new slate of directors are "fairly impeccable." The new slate includes Starboard Value's CEO and chief investment officer Jeffrey Smith – who will be part of the committee evaluating the sale of Yahoo's Internet assets.

Giles also pointed out that the remaining new directors include an investment banker by trade (Tor Braham), a media executive (Eddy Hartenstein) and a technology expert (Richard Hill).


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