The Only Two Sentences You Have To Read To Understand Dan Loeb's War On Yahoo's Board

daniel loeb

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.

What gives?

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.

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