Loeb In, Thompson Out - Real Time Insight

By Zacks.com,  May 14, 2012, 09:03:01 AM EDT

With the removal of Yahoo! CEO Scott Thompson, shareholder activist Dan Loeb gets 3 seats on the board and a sale of Asian assets appears imminent.

To further show that the guard is changing, there is a new chairman of the board as well.  Roy Bostock is out and Director Fred Amoroso is in, which may be the most stunning move out of all of this.  Amoroso has been on the board a full 3 months and as the former CEO of Rovi, the question becomes what can this new blood do?

Clearly Dan Loeb of Third Point is going to look to maximize shareholder value by unlocking the Asian assets, and with a brand new chairman of the board, the potential for this sort of deal rises to a level of almost absolute certainity.

Knowing this, does Yahoo! now become a good investment on a sum of the parts play?  There are many that have said the Asian assets could net $15-$18 a shares and the remaining business at Yahoo! could be another $5-$10 - which means that invetsors could see gains of $5-$13 per share should a deal be priced at the high end and investors establish a base around $15

The pre-market has Yahoo! shares up about 2% 

Is now the time to roll the dice with Yahoo! ???  Will the new board members and new chairman clean house or will they just sell the Asian assets?  Will they get a fair price for the assets?

Let us know what you think!


 
YAHOO! INC (YHOO): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: YHOO



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