This article talks about Hedge Fund Investor Daniel Loeb getting more active with Yahoo. This is a real positive as I have no confidence whatsoever in the Yahoo Board of Directors which have been a disaster ever since they rejected Microsoft’s $31 a share offer.
I think that Yahoo should create a tracking stop for their Asian assets while keeping talks for a possible sale ongoing. This would give the market a lot better feel for the value of Yahoo’s core U.S. operations. Pending the sale all cash should be returned to investors as a dividend as opposed to any acquisitions, as Yahoo needs to maintain focus on their own operations. It seems like Yahoo has really lost its identity, so I believe that they need to bring on a strong leader that can reshape the company to better capitalize on their tremendous footprint and traffic. It has the potential to be a one stop shop inclusive of a social network, videos, messaging, email, search, etc but they just seem to be lacking direction.