Third Point's "Value Yahoo" Website (Proxy Contest) ~ market folly

Monday, April 2, 2012

Third Point's "Value Yahoo" Website (Proxy Contest)

Dan Loeb's hedge fund Third Point has launched a proxy contest against Yahoo! (YHOO). A while back, we detailed when they initiated an activist position in YHOO and have also posted up Loeb's original letter to Yahoo. Now, the hedge fund has launched a website "for shareholders who support change and a better future for Yahoo."

The URL is simply: and it features detailed sections on the following categories:

- Failed Leadership: The hedge fund outlines how YHOO has lost ground in US display ad revenue, lost market share in U.S. search, had 5 CEO's in 5 years, and has guided below Wall Street estimates in 13 of the last 21 quarters. Third Point plans to "work with fellow shareholders to promote improved corporate governance, provide a strong strategic vision, and unlock value for Yahoo! shareholders."

- Their Proposed Slate of New Directors: Third Point recommends Dan Loeb (its founder), Harry Wilson (Chairman and CEO of MAEVA Group), Michael Wolf (Founder and CEO of ACTIVATE), as well as Jeff Zucker (Executive Producer of 'Katie').

- The Under-appreciation of Alibaba: Loeb's hedge fund says that "Alibaba Group Holdings is Yahoo's largest and most dynamic asset. (It) is one of the most valuable internet companies in the world, with an implied valuation of roughly $35 billion based on recent investments by some of the world's leading private equity and venture capital firms."

- Third Point's Latest Letter to the Company:

Embedded below is the latest letter Loeb sent to Scott Thompson, the CEO of Yahoo:

You can check out all the resources on

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