The filing said the review “may lead to a re-evaluation” of Yahoo's previously announced plans to return to shareholders substantially all of the after-tax cash proceeds under the initial share repurchase from the May 2012 deal with Alibaba.
Marissa Mayer starts a review of the company's strategy
Under the agreement, Yahoo was to sell one-half of its stake in Alibaba for at least $6.3 billion in cash and up to $800 million in new Alibaba preferred stock. “There was an expectation of getting that cash back, so I think there will definitely be some disappointment,” said RBC Capital Markets analyst Andre Sequin.
But he said that shareholders also expect Mayer, a former Google executive, to re-invest in the company's domestic business to rejuvenate the struggling Web company.
As part of Mayer's review, Yahoo said, she would look at the company's growth and acquisition strategy, the restructuring plan launched by her predecessor, and Yahoo's cash and capital allocation strategy.
Publish date: August 10, 2012 10:19 am| Modified date: December 18, 2013 11:35 pm