Yahoo! Inc. (NASDAQ:YHOO) is set to release its fourth quarter earnings report in a matter of minutes, but that might not be the only news the search giant will report. Dow Jones is reporting that management might reveal that they’re looking into “strategic alternatives.” The Wall Street Journal’s Doug MacMillan also tweeted the same news, citing his own sources.
Meanwhile Starboard Value continues to demand that Yahoo fix its board of directors.
Carlson Capital's Double Black Diamond Fund posted a return of 3.3% net of fees in August, according to a copy of the fund's letter, which ValueWalk has been able to review. Q3 2021 hedge fund letters, conferences and more Following this performance, for the year to the end of August, the fund has produced a Read More
Yahoo will say it’s exploring options: WSJ
The Wall Street Journal cited unnamed sources who said Yahoo is looking into “strategic options” for its Internet business and will announce this with its fourth quarter earnings after closing bell. If the news is true, The Journal notes, it would be the biggest indicator that the Internet firm’s board of directors is thinking about selling all or some of its online properties.
The media outlet also notes that Verizon has expressed interest in purchasing the struggling firm, and its sources added that TPG Capital, a private-equity firm, has thought about bidding for some or all of the online properties. However, as recently as December, Yahoo CEO Marissa Mayer emphasized that they didn’t expect a sale to be the final decision.
Yahoo should sell itself: analyst
Interestingly, just today, BGC Partners analyst Colin Gillis told CNBC‘s Squawk Alley that if Yahoo gets a bid, it should sell itself on the spot. He added that the company should take care of things out of the watchful eye of Wall Street, calling it “a turnaround play that has shown very little turnaround.” He thinks that either selling itself or doing a private turnaround are the best options.
Starboard wrote to Yahoo’s board of directors last month, emphasizing the lack of results in the turnaround process and saying that it no longer had any confidence that management could turn things around. Starboard CEO Jeffrey Smith reportedly told CNBC that possible buyers of the Internet firm’s core business had contacted them, giving credence to tonight’s report that management could have some extra news to go along with tonight’s earnings report.
Yahoo shares bounced in late afternoon trading, attempting to end the regular trading day flat with the opening price but will probably fail to do so. At about 15 minutes before closing bell, the stock was trading down 0.95% at $29.29 a share.