Valuewalk was contacted by Dan Loeb’s Third Point with breaking news this morning about his proxy war with Yahoo Inc. (NASDAQ:YAHOO). The fund manager has launched a new site entitled valueyahoo.com that is entirely dedicated to analysing the company’s current failures and pointing it in a new direction. The move is the latest ina series of strategies employed by Loeb in his attempts to have greater control over Yahoo’s business. The website has just come on line and contains reams of information abou the state of the company.
The site is decorated in Yahoo’s traditional purple and it’s homepage has five main links. These are from left to right, Failed Leadership, Third Points Plan, and Third Points Latest letter to yahoo, a help wanted ad, and an analysis of the company’s investment in Alibaba, the Asian search giant. The message is clear from each page. Each link leads either to a page of text detailing Third Points ideas on the subject. All of the links act in this way apart from the failed leadership one which pops up a persuasive and stylish little presentation on the company’s failures. Each section’s mainpage gives access to a whole host of sub pages for those who wish to learn more about the hedge fund’s thoughts on Yahoo.
Loeb has always had a talent for innovative ways to make a company see things his way but this has to be one of his finest moments. The website is succinct and stylish. It’s nice to look at and it makes its point well. It keeps the layout simple and doesn’t bury the user in a stream of data instantly upon entry. I’d be willing to bet some talented designers were behind the new site. It gives an uncomplicated version of the reasons Third point thinks that Yahoo is undervalued and why they believe the company’s management needs to be changed. Head on over and see for yourself. The site makes its argument well and could be key in the battle between the hedge fund and the bank’s current board.
I wish all investment and management disputes were fought like this, though doubtless it may become more of a significant trend after this effort. The colorful attempt at publicizing Yahoo as an undervalued asset should become a touchstone in the ongoing battle.