1
00:00:00,120 --> 00:00:03,680
Speaker 1: As Karen Moscow has been reporting, Yahoo has reached a

2
00:00:03,680 --> 00:00:07,400
Speaker 1: settlement with the activist investor group Starboard Value. Going to

3
00:00:07,520 --> 00:00:11,360
Speaker 1: name four new independent directors to the board averts a

4
00:00:11,440 --> 00:00:15,040
Speaker 1: proxy war. But I'm wondering, you know what difference it

5
00:00:15,080 --> 00:00:19,160
Speaker 1: makes at this time given where Yahoo is. Brian Weeler

6
00:00:19,600 --> 00:00:23,640
Speaker 1: is a senior analyst for Advertising, UH and Media and

7
00:00:23,840 --> 00:00:27,080
Speaker 1: Internet at Pivotal. He joins US. Now, Brian, they're going

8
00:00:27,160 --> 00:00:32,559
Speaker 1: to sell off Yahoo, So why why make a deal now? Yeah, Well,

9
00:00:32,600 --> 00:00:35,640
Speaker 1: if you're the board, you get to save face. That's

10
00:00:35,640 --> 00:00:38,879
Speaker 1: an advantage, UM, because I don't think anyone on the

11
00:00:38,920 --> 00:00:41,760
Speaker 1: board wanted to be in a position where they're for

12
00:00:41,960 --> 00:00:47,000
Speaker 1: consideration to um another board seat somewhere and they have

13
00:00:47,159 --> 00:00:50,000
Speaker 1: on the resume that they led to a lost at

14
00:00:50,000 --> 00:00:53,159
Speaker 1: a proxy battle. That's not something that anyone wants. So

15
00:00:53,200 --> 00:00:56,480
Speaker 1: I think that the board was incented to avoid the

16
00:00:56,520 --> 00:00:59,200
Speaker 1: fight one way or another. Now, the battle, and the

17
00:00:59,240 --> 00:01:01,640
Speaker 1: difficult thing for anyone from the outside to anticipate is

18
00:01:01,920 --> 00:01:05,880
Speaker 1: just how how strongly will the board collectively defend the

19
00:01:05,920 --> 00:01:09,680
Speaker 1: current management? And that was really the thrust of the problem,

20
00:01:09,680 --> 00:01:13,440
Speaker 1: if you will, um. You know, we read reporting suggesting

21
00:01:13,480 --> 00:01:16,360
Speaker 1: that not all the board was on board with management,

22
00:01:16,360 --> 00:01:18,200
Speaker 1: but they were all going to go down together if

23
00:01:18,240 --> 00:01:20,840
Speaker 1: this actually went to a proxy battle. So clearly that

24
00:01:21,280 --> 00:01:23,120
Speaker 1: you know, they got the sense that this is a

25
00:01:23,120 --> 00:01:25,080
Speaker 1: better outcome for them. And again it's hard not to

26
00:01:25,080 --> 00:01:27,840
Speaker 1: look at a personal level. UM. I think they all

27
00:01:27,840 --> 00:01:31,440
Speaker 1: want to avoid being sued. UM. So there is some

28
00:01:31,600 --> 00:01:34,160
Speaker 1: fiduciary duty that I think they have to, of course

29
00:01:34,160 --> 00:01:37,240
Speaker 1: be mindful. But I think that it's UM. You know,

30
00:01:37,400 --> 00:01:40,400
Speaker 1: if it strikes me that this is about avoiding a

31
00:01:40,480 --> 00:01:44,280
Speaker 1: worse outcome, Brian, does it mean that actually a bus

32
00:01:44,520 --> 00:01:46,520
Speaker 1: a time for merse and Meyer or does it mean

33
00:01:46,520 --> 00:01:48,600
Speaker 1: that there will be more pressure on her as chief

34
00:01:48,640 --> 00:01:53,480
Speaker 1: executive officer? I think that Uh, it makes it more

35
00:01:53,760 --> 00:01:56,880
Speaker 1: likely UH, or we it's more likely that we're at

36
00:01:56,880 --> 00:02:01,480
Speaker 1: the point where the current management team is done. UM.

37
00:02:01,520 --> 00:02:03,880
Speaker 1: There's all sorts of ways rabbits could be pulled out

38
00:02:03,880 --> 00:02:07,480
Speaker 1: of hats. Mindful of that, UM. I think it makes

39
00:02:07,520 --> 00:02:10,400
Speaker 1: it more likely that the auction process is a real

40
00:02:10,639 --> 00:02:16,800
Speaker 1: process now, UM not necessarily certain. UM. Again, we're talking

41
00:02:16,880 --> 00:02:21,400
Speaker 1: about four seats on the board, not control. UM. It's

42
00:02:21,440 --> 00:02:26,000
Speaker 1: possible that UM, once on the board, the new board

43
00:02:27,000 --> 00:02:29,120
Speaker 1: members find to be in their interest not to be

44
00:02:29,160 --> 00:02:33,600
Speaker 1: more aggressive in pursuing a sale. Um. On balance, it

45
00:02:33,639 --> 00:02:37,639
Speaker 1: does seem more likely that we made progress towards seeing

46
00:02:37,680 --> 00:02:41,200
Speaker 1: an actual sales business and sale to business replacement of management.

47
00:02:41,560 --> 00:02:44,320
Speaker 1: Brian Weezer from Pivotal thanks for joining us on short notice.

48
00:02:44,400 --> 00:02:47,680
Speaker 1: Yahoo in agreement with Starboard Value. Shares are up in

49
00:02:47,720 --> 00:02:54,040
Speaker 1: the pre market by one. Right now, we are counting

50
00:02:54,040 --> 00:02:57,720
Speaker 1: down to the opening bell. Brought to you by deep

51
00:02:57,800 --> 00:03:00,000
Speaker 1: gained Cherokee, the most awarded STV ever. The Grand Cherokee

52
00:03:00,080 --> 00:03:02,560
Speaker 1: combined continues to raise the bar with this luxurious interior

53
00:03:02,600 --> 00:03:05,240
Speaker 1: and legendary four by four capability to drive one at

54
00:03:05,240 --> 00:03:06,360
Speaker 1: your local cheap dealer today