{
  "docId": "019dd923-622b-71dc-a6da-cdd4ec8c51b0",
  "docSlug": "17952e3d9ba9",
  "documentTitle": "Yahoo! Inc. (YHOO)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2015-08-10 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 3,
  "pageCount": 7,
  "prevPage": 2,
  "nextPage": 4,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 42,
  "notes": "The slide uses a bar chart to highlight the decline in EBITDA and FCF since 2012, specifically pointing to the period after current management took over.",
  "elementsJson": [
    "headline_text",
    "bar_chart_grouped",
    "kpi_table",
    "paragraph",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6da-cdd4ec8c51b0/3",
  "deckHref": "/decks/019dd923-622b-71dc-a6da-cdd4ec8c51b0",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6da-cdd4ec8c51b0.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6da-cdd4ec8c51b0#slide-3",
  "components": [
    {
      "bbox": {
        "h": 0.05,
        "w": 0.25,
        "x": 0.63,
        "y": 0.18
      },
      "kind": "callout",
      "text": "LTM Core Business Adjusted EBITDA has declined (57%) compared to 2012 levels",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9d4f16e5-80f9-482b-9c86-2d2e608b4755",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "This increase in costs explains greater than 70% of Yahoo's Core Business Adjusted EBITDA decline.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee37-76cb-846e-918ecc02561e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.7,
        "x": 0.15,
        "y": 0.18
      },
      "kind": "chart",
      "text": "Bar chart showing Core Business Adjusted EBITDA and FCF from Q1 2012 to Q2 2015",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "afed97eb-1e0f-4bf1-986a-e4d7dbb79b61",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Adjusted EBITDA: 57%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee37-76cb-846e-95e7efae3b03",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.76,
        "x": 0.12,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "We acknowledge that the industry's shift from PC to mobile has contributed to this decline, but the main reason behind the massive decline in profitability is the Company's excessive spending on SG&A and low return on investment in R&D initiatives and acquisitions.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "639f4c76-dcf0-4efd-b784-fbe51356a079",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.76,
        "x": 0.12,
        "y": 0.54
      },
      "kind": "paragraph",
      "text": "Since Q1 2012, annual operating expenses have increased by greater than $550 million. This increase in costs explains greater than 70% of Yahoo's Core Business Adjusted EBITDA decline.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b7cc2d4d-389b-448b-9b14-4cb2132db236",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.76,
        "x": 0.12,
        "y": 0.73
      },
      "kind": "paragraph",
      "text": "Profitability has dramatically decreased despite the fact that over the last three years Yahoo has spent approximately $5.7 billion in acquisitions and product development costs.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ffe698b4-24b7-478d-8cf7-7fda317b8026",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.7,
        "x": 0.15,
        "y": 0.41
      },
      "kind": "source-note",
      "text": "Source: Company filings and Starboard Value estimates. Note: Reported adjusted EBITDA from Yahoo adjusted for gains on patent sales, TIPLA amortization, Yahoo! Japan revenue and royalties, and other patent revenue.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "46ebd2b5-2742-4e13-94ad-347bc9dc1ec6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.4,
        "x": 0.15,
        "y": 0.16
      },
      "kind": "title",
      "text": "Yahoo's Core Business Adjusted EBITDA",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "20c5b604-732c-4403-b862-b4f711c01ace",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "expose_contradiction",
      "slug": null,
      "matchId": "a82e9f80-0182-45d0-8cae-630bbe83c9a9",
      "evidence": "The slide explicitly contrasts management's narrative (industry shift) with the author's data-driven argument (excessive spending).",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}