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  "documentTitle": "Yahoo! Inc. (YHOO)",
  "authorId": "03_Starboard_Value",
  "authorName": "Jeffrey C. Smith",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2015-08-10 00:00:00",
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      "kind": "callout",
      "text": "EBITDA levels were clearly not “...at a low point.”",
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      "text": "Core Business Adjusted EBITDA comparison charts",
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      "text": "Core Business Adjusted EBITDA: (63%)",
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      "kind": "paragraph",
      "text": "Recent public commentary by management also increases our significant concerns that management and the Board may not be aware of the severity of the current situation. On Yahoo's Q3 2014 earnings call, management affirmed that \"EBITDA levels are at a low point and [the Company expects] to see improvements with revenue growth in 2015...\" Since then, the Company reported massive year-over-year declines in Core Business Adjusted EBITDA to the tune of (29%) (or $89 million) in Q4 2014, (63%) (or $127 million) in Q1 2015, and (45%) (or $81 million) in Q2 2015. EBITDA levels were clearly not \"...at a low point.\" In addition to these declines, based on our estimates, Yahoo's Core Business Adjusted EBITDA is expected to continue to decline (59%) year-over-year (see below).",
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      "kind": "paragraph",
      "text": "acquired companies were, and still are, losing a considerable amount of money, but we also believe that these acquisitions, on a combined basis, have failed to deliver material revenue growth. In fact, we believe that an overwhelming number of the acquired start-ups have actually been shut down after being acquired by Yahoo. The Company's strategy to spend several hundred million dollars each quarter to buy high priced high multiple companies is akin to death by a thousand cuts. It has not worked thus far, yet Yahoo continues to spend significant capital on unprofitable and value destructive acquisitions.",
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      "text": "“EBITDA levels are at a low point and [the Company expects] to see improvements with revenue growth in 2015...” — Yahoo! Management, Q3 2014 earnings call.",
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      "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.",
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      "kind": "title",
      "text": "Core Business Adjusted EBITDA continues to decline after management's assurance that Q3 2014 was a \"low point\"",
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