Live
- Centre’s intent is to finish off small parties: DK Shivakumar
- Allu Arjun Released from Chanchalguda Jail, says he respects law
- Jesus is synonymous with sacrifice, forgiveness: Ponnam
- HC announces verdict in Kannada for the first time
- Uttam releases water from Nizam Sagar for Rabi crop
- TG to be Rs 84L cr economy in 10 years: Sridhar Babu
- First TGCHE, V-Cs meet deliberates on higher education roadmap for state
- 2 senior professors to join NALSAR
- Former Principal of SPW College passes away in US
- Hyderabad: Govt out to remove electric poles, transformers on roads across city
Yahoo board in final talks on future of company
Highlights
Yahoo Inc\'s board of directors on Friday is in the third and final day of meetings that could decide the future of one of Silicon Valley\'s most prominent but troubled companies.
Yahoo Inc's board of directors on Friday is in the third and final day of meetings that could decide the future of one of Silicon Valley's most prominent but troubled companies.
.jpg)
One option on the table for the nine board members is whether to sell Yahoo's core business, which includes Mail, its sports sites, and advertising technology.
The company is also in the process of deciding whether to continue with the spinoff of its $30 billion stake in Chinese e-commerce company Alibaba Group Holdings Ltd.
SunTrust analyst Robert Peck said the board might hold off on any decision because of the complexity of some of the options.
"While many investors may simply apply a mid single-digit EBITDA multiple to value the core, we believe the value is more intricate," he wrote, referring to earnings before interest, taxes, depreciation and amortization.
According to tech news site Re/Code, Yahoo's board finished its meetings without a decision on the Alibaba spinoff. The site said a decision, which could include halting, delaying or continuing with the spinoff, was expected by the end of the weekend, citing sources.
Calls to sell the core business increased last month when activist investor Starboard Value LP requested the move to avoid potential tax penalties associated with a spinoff of Alibaba.
In January, Chief Executive Officer Marissa Mayer announced the plan to spin off the Alibaba stake into an independent business. Yahoo said the deal would be tax-free, but the U.S. Internal Revenue Service has declined to verify that.
Taxes related to the spinoff could leave Yahoo shareholders on the hook for $12 billion.
Analysts who follow the company have said that private equity; media and Internet firms are potential buyers for Yahoo's core business.
Next Story
ADVERTISEMENT
