Yahoo: Recent Events Portend Value Creation
By Adam Muller:
A lot has happened to Yahoo (YHOO) in the last few weeks and while many uncertainties remain, the risk/reward dynamics of an investment at the current stock price of $15.73 is compelling.
Recent Events
In early January Yahoo announced Scott Thompson as the new CEO of Yahoo. Prior to the appointment Mr. Thompson was President of the Paypal division of eBay (EBAY). Then, after the market closed on Tuesday January 17, Yahoo co-founder, board member, and former CEO Jerry Yang resigned from the company. This was seen as a positive for the company and the stock traded up. Jerry Yang was seen as resisting change. This past September he was called out by the activist hedge fund Third Point both for rejecting Microsoft’s (MSFT) buyout offer in 2008 and for attempting to play both sides of the table in the current strategic discussions between Yahoo and various private equity firms.
Investing, Long Term Investment, stock market | admin February 3, 2012
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