Not clear why the folks from Goldman Sachs and Lehman Brothers can’t get the job done, but Yahoo has now added a third investment banker, Moelis & Company, to its advisory team. Yahoo’s problem can’t be solved with more bodies, so the latest boutique was presumably hired for Ken Moelis’s expertise and/or relationships. Either way, today’s board meeting must be awfully crowded.
According to people familiar with the matter, Moelis & Co was brought in recently to flank Goldman Sachs and Lehman Brothers as they guide Yahoo directors and chief executive Jerry Yang through their options. Moelis & Co and Yahoo declined to comment on Friday…
Based in Los Angeles, Moelis & Co is run by Ken Moelis, one of the most prominent dealmakers in the US. Mr Moelis, whose early days in the banking business were spent at Drexel Burnham Lambert, the junk bond house, later gained prominence on Wall Street at DLJ and UBS where he was head of investment banking. Mr Moelis left the Swiss financial services group last year to set up his own firm.Last year, Mr Moelis advised Ron Burkle, the Los Angeles billionaire investor, Democratic fundraiser, and Yahoo board member, on his offer to buy Tribune.
So there’s your key relationship on the hiring side–Yahoo board member Ron Burkle. Ron presumably insisted recommended the addition. Not clear whether this is just Ron hiring his trusted buddy or whether Ken knows someone or something that the folks at Goldman and Lehman don’t (or whether Ken just talked his way in to grab a few tens of millions in fees). Also not clear what additional expertise or relationships will accomplish at this point.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.