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Dan Loeb Goes Back To His Roots, Says Yahoo Lives In An "Illogical Alice-in-Wonderland World"

Tyler Durden's picture




 

There was a time when Mr. Pink would send out witty activist letters full of zing and sarcasm, which would brighten many a trader's day. Then Mr. Pink started running a multi-billion fund and Mr. Pink matured into Dan Loeb. Today, Loeb returns with a vengeance having submitted a zinger letter to YHOO CEO Scott Thompson, in his capacity as a 5.8% shareholder of YHOO stock. Needless to say, Loeb is less than pleased with Yahoo's recent snub of his board of director candidates. The result are sentences such as the following: "Only in an illogical Alice-in-Wonderland world would a shareholder be deemed to be conflicted from representing the interests of other shareholders because he is, well, a shareholder too."..."this “long-term vs. short-term” excuse is a canard and particularly inapt in the case of Yahoo!. If there ever was a company in need of a sense of urgency, it is this one."..." Was it “short-term” thinking that led Third Point to push for the resignations of Jerry Yang, Roy Bostock, Arthur Kern and Vyomesh Joshi? If so, is there a Yahoo! shareholder on the planet who thinks this “short-term” thinking was bad for the Company? Was it “short-term” thinking that led Third Point to speak up for shareholders by questioning the fairness of the attempt by the Company to give away control to private equity funds – without receiving a premium – to entrench Roy Bostock and Jerry Yang? Or to suggest, as Third Point has, that the Company’s stake in Alibaba is more valuable than generally understood, and that the Company should hold on to it unless it can get fair value? Was it “short-term” thinking to point out the lack of media and advertising expertise on the Board and nominate extraordinarily qualified nominees to fill that gaping hole?" And so on. Loeb concludes amicably: "We remain willing to engage further with you but will not deviate from our demand for badly-needed shareholder representation." We are confident his next letter, which will be released in 1-2 months, will hardly be so pleasant.

Full letter:

 

 

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Wed, 03/28/2012 - 14:02 | 2297910 q99x2
q99x2's picture

Yahoo Sucks. They revise their services for the worse everytime. Hate them. But they were the last to start taking money from GS after CNBC then the Business Insider and finally Yahoo. But that was probably only because their management is so screwed.

Wed, 03/28/2012 - 14:01 | 2297914 ZackAttack
ZackAttack's picture

Tech guys don't give a shit what beancounters think. Just keep those big checks coming, Danny-boy.

Wed, 03/28/2012 - 14:09 | 2297937 Dr. Engali
Dr. Engali's picture

Yahoo should be a division of Microsoft who was willing to over pay for this piece of shit.

Wed, 03/28/2012 - 14:11 | 2297946 CvlDobd
CvlDobd's picture

I don't understand activist funds trying to turn around shit companies. How about investing in already well run companies instead o reinventing the wheel?

Wed, 03/28/2012 - 19:49 | 2299109 lineskis
lineskis's picture

Because if you turn a piece of crap into a cash machine you make big bucks. While if you turn a cash machine into a somewhat better cash machine you only make small bucks. Yes, they are greedy but it's only a sin not a crime! ;)

Wed, 03/28/2012 - 14:12 | 2297952 W10321303
W10321303's picture

 

 

WASHINGTON (AP) — Global warming is leading to such severe storms, droughts and heat waves that nations should prepare for an unprecedented onslaught of deadly and costly weather disasters, an international panel of climate scientists said in a new report issued Wednesday.

The greatest threat from extreme weather is to highly populated, poor regions of the world, the report warns, but no corner of the globe — from Mumbai to Miami — is immune. The document by a Nobel Prize-winning panel of climate scientists forecasts stronger tropical cyclones and more frequent heat waves, deluges and droughts.

The 594-page report blames the scale of recent and future disasters on a combination of man-made climate change, population shifts and poverty.

In the past, the Intergovernmental Panel on Climate Change, founded in 1988 by the United Nations, has focused on the slow inexorable rise of temperatures and oceans as part of global warming. This report by the panel is the first to look at the less common but far more noticeable extreme weather changes, which lately have been costing on average about $80 billion a year in damage.

Is it just Yahoo?


Other cities at lesser risk include Miami, Shanghai, Bangkok, China's Guangzhou, Vietnam's Ho Chi Minh City, Myanmar's Yangon (formerly known as Rangoon) and India's Kolkata (formerly known as Calcutta). The people of small island nations, such as the Maldives, may also need to abandon their homes because of rising seas and fierce storms.

"The decision about whether or not to move is achingly difficult and I think it's one that the world community will have to face with increasing frequency in the future," Field said in a telephone news conference Wednesday.

This report — the summary of which was issued in November — is unique because it emphasizes managing risks and how taking precautions can work, Field said. In fact, the panel's report uses the word "risk" 4,387 times

Wed, 03/28/2012 - 14:37 | 2298058 TonyCoitus
TonyCoitus's picture

I'll wager that Dan Loeb does not sit around in his bath robe eating stale Doritos like Mr. Pink did.  I miss Mr. Pink!

Wed, 03/28/2012 - 14:59 | 2298168 Luke 21
Luke 21's picture

Thank goodness for guys like Dan Loeb keeping executives honest.

Wed, 03/28/2012 - 16:28 | 2298496 Westcoastliberal
Westcoastliberal's picture

Yahoo is missing the boat.  What they should be doing is taking advantage of Googl'es NSA ways.  Maybe a series of ads patterned after the movie "Network".  "I'm mad as hell, and I'm not going to Googl'e anymore!"  Meantime change their approach and stop tracking you like a hunted deer.

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