Third Point Blasts Yahoo ‘Mismanagement’

Dec 14 2011 | 3:54am ET

Nothing interferes with Daniel Loeb’s holiday spirit like Yahoo! Inc. and its board of directors.

The Third Point chief renewed his war of words with the Internet search company, pronouncing himself “extremely troubled” by its management’s behavior. In particular, Loeb took aim at a reported “sweetheart PIPE deal which will serve only to entrench [founder Jerry] Yang and the current board while massively disenfranchising public shareholders and permanently robbing us of the opportunity to obtain a control premium.” Loeb said that the sale of the whole company, rather than minority stakes, was in the best interest of shareholders.

Wielding his famed poison pen, Loeb blasted the “dysfunction and inequity being exhibited in the process of maximizing stockholder value that the board is allegedly ‘managing,’” but admitted he was “not surprised by this mismanagement given the history of strategic bungling by Yahoo Board Chairman Roy Bostock and founder Jerry Yang.”

Loeb called on Yahoo to make public its “process letters” in which it invited companies to make it offers. “We assume that Yahoo’s process letters did not place any artificial restrictions on the proposals that the Yahoo board was willing to consider in its search for strategic alternatives, such as discouraging, or even prohibiting, bids to purchase Yahoo in its entirety,” Loeb wrote.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…