Dan Loeb Counsels Yahoo To Do The Right Thing

December 13, 2011

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Mr. Roy Bostock, Chairman

Dear Directors:
Third Point LLC, as the beneficial owner of 5.2% of Yahoo! Inc.’s (“Yahoo”) outstanding shares, remains extremely troubled by news reports regarding the dysfunction and inequity being exhibited in the process of maximizing stockholder value that the Board is allegedly “managing”. We are disturbed but not surprised by this mismanagement given the history of strategic bungling by Yahoo Board Chairman Roy Bostock and Founder Jerry Yang, which has been chronicled in our previous letters and in numerous critical media and analyst reports. As significant shareholders with our own fiduciary duties to investors to uphold, we cannot stand by silently if such reports are accurate and Yahoo, a company in no need of cash, plans to engage in a sweetheart PIPE deal which will serve only to entrench Mr. Yang and the current board while massively disenfranchising public shareholders and permanently robbing us of the opportunity to obtain a control premium.

We are not alone in our concerns. Shareholders, analysts, and the media are questioning the integrity of the process currently underway. As stewards of our assets you are charged with a duty to place stockholder interests above personal gain or other motives. In order to allay the concerns and uncertainty permeating the marketplace and provide much needed transparency on the supposed “process” that Yahoo is undertaking, we ask that you immediately make public the letter(s) in which Yahoo invited third parties to make proposals for the Company (the “Process Letters”). We assume that Yahoo’s Process Letters did not place any artificial restrictions on the proposals that the Yahoo board was willing to consider in its search for strategic alternatives, such as discouraging, or even prohibiting, bids to purchase Yahoo in its entirety.

Of course, we appreciate the need for confidential negotiations, and therefore stockholders need not know at this stage who received the Process Letters. Rather, stockholders should simply be allowed to see if the Process Letters, which may be published in redacted form, are consistent with the Board’s paramount duty to maximize stockholder value. Additionally, Third Point does not seek and does not expect to receive material non-public information and thus requests that you file such letters publicly with the Securities and Exchange Commission via Form 8-K with all deliberate speed.

In light of the serious, timely concerns expressed by nearly all Yahoo stakeholders and interested parties, undertaking this action is the only fair and reasonable thing to do.

Very truly yours,

Daniel S. Loeb
Chief Executive Officer
Third Point LLC
390 Park Avenue
New York, New York 10022

[via BusinessWire]

6 comments (hidden for your protection)
Show all comments ↓

Comments (6)

  1. Posted by guest | December 13, 2011 at 6:31 PM

    Prick.

    -C. Bartz

  2. Posted by Merritt Parkway | December 13, 2011 at 11:55 PM

    Getting better but still TLDR.

    -Yahoo Board

  3. Posted by TimmyJohn | December 19, 2011 at 1:31 PM

    I can't see how this has been happening for years with every take over attempt. They should be the ones inviting Loeb like HP did with Whitworth. http://www.linkedin.com/in/ralphwhitworth

  4. Posted by Visit the website | September 12, 2013 at 12:49 AM

    The post is absolutely fantastic! Lots of great information and inspiration both of which we all need! Also like to admire the time and effort you put into your blog.

  5. Posted by Hyundai Tampa | September 15, 2013 at 12:05 AM

    That publish offers served everyone for an post that we 'm writing. Appreciate it intended for giving everyone another point of view for this subject. Currently I am able to effortlessly full our post.

  6. Posted by masini jocuri | March 11, 2014 at 3:20 PM

    Hyundai Motor Co plan to start out retailing the very first battery-powered electrical car (EV) in 2016 while South Korea's champion of fuel-cell cars and trucks hedges its bets in next-generation environment friendly technology. Hyundai has leant in direction of engines which make hydrogen into electricity in response to stricter emissions regulations in markets for example the United States Of America. Investigation and growth partner Kia Motors Corp has highlighted rechargeable battery power. But the department of work is blurring each time whenever the variety of battery-powered EVs is rising. BMW's i3 as well as Nissan Motor Co Ltd's Leaf are extensively required to reach Korea this season – as will Kia's Soul EV. "There is no crystal clear way about which environment-friendly automobiles are going to win. We are now isolating specific roles of Hyundai and Kia, with Hyundai introducing fuel cell cars together with Kia specializing in electric powered cars," Senior Vice Managing director Lee Ki-sang informed reporters on Tuesday.