Abstract

In July 2016, Yahoo! announced sale of its core assets to Verizon for $4.8 billion (all cash deal). The sales proceedings would take around 6-9 months leaving Yahoo Stakeholders with $41 billion of Alibaba and Yahoo! Japan stake. The case describes the events which led to the sale of Yahoo’s core assets and the attempts done by its management to revive it before the sale. The case also describes the propositions of activist shareholders to revive Yahoo!

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Reviving Yahoo! as well as creating shareholder’s value by selling the Alibaba and Yahoo! Japan stakes with a tax efficient plan.
• Sell Yahoo! core or recover considering the propositions given by activist shareholders.

Keywords

Internet, Yahoo!, Valuation, Turnaround, Shareholders, Spin-off, Verizon