As the struggling internet company formed a committee to oversee the options, investors saw it as a positive move, while a hedge fund started a proxy battle with the company. The shares jumped as it was announced that investment banks and a law firm would oversee the process.
Recently, various shareholders, including Starboard Value (a hedge fund), have been actively encouraging the company to start the auction. It seems the company is moving to sell its search engine, email and the news website. Despite the CEO (Marissa Mayer) trying to change the fortunes of the company by moving the focus to other areas, the move has been initiated.
The company had previously said that it was looking at options, particularly after the last month’s earnings.
Starboard Values, Jeffrey Smith, is pushing for this significant change and is going to make certain that the sale is handled correctly. He will do this by making sure of the people who are on the Board.
The dates for the nomination of directors to oversee the sale are from February 25 until March 26. Following this, the annual general meeting will be held in May.
Some analysts believe this sale is only going ahead because of the threat of the proxy fight with Starboard Value. Starboard Value has not commented on this.
Previously Yahoo was planning to spin off the stake it has in Alibaba, and Mayer said that the separation of these two was absolutely necessary for the shareholders. Naturally, there is concern about losing the proxy fight.
The directors have engaged well -known companies to advise on finances and legal aspects.
One interested party is said to be Verizon.
image source: techaeris.com