One of Yahoo’s biggest investors, hedge fund manager Dan Loeb, declared a proxy war against the company yesterday, naming four people he wants other shareholders to elect onto Yahoo’s board.
New Yahoo CEO Scott Thompson thinks Yahoo should be more than just a media company.
Because 95% of Yahoo’s revenues come from advertising and media, Loeb thinks this is nuts.
He explains this in two sentences in his proxy filing:
Recent press reports indicating that the [Yahoo] Board’s current strategic direction is to emphasise the technology aspects of the Issuer’s business at the expense of advertising and media, which accounts for the vast majority of the Issuer’s revenues.
[I] believe that this approach places the Issuer’s core revenue generating capability at substantial risk, fails to recognise the tremendous growth opportunity in video, and directly results from a dearth of essential expertise in media and entertainment at the [Yahoo] Board level.