👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Activist investor takes stake in Yahoo, urges AOL combination

Published 26/09/2014, 17:57
© Reuters A Yahoo logo is pictured in front of a building in Rolle

By Alexei Oreskovic

SAN FRANCISCO (Reuters) - Activist investor Starboard Value LP said on Friday it has acquired a significant stake in Yahoo Inc and urged the struggling Internet company to cut costs, monetize its Asian assets and seek a "strategic combination" with AOL Inc.

Shares of Yahoo Inc were up 3.75 percent at $40.41 at midday.

In a letter to Yahoo Chief Executive Marissa Mayer, Starboard said it was looking forward to "engaging directly" with Yahoo to discuss how its plan could be implemented in a timely manner.

© Reuters. A Yahoo logo is pictured in front of a building in Rolle

"We believe a merger of AOL and Yahoo's core business may be one of the best ways to both fully seize the cost reduction opportunity and also to tax efficiently monetize Yahoo's non-core equity holdings," the letter said.

(Reporting by Alexei Oreskovic; Editing by David Gregorio)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.