{ "docId": "019dd923-622b-71dc-a6dc-61315eb6ee44", "docSlug": "a630b5dcec7a", "documentTitle": "Yahoo! Inc. (YHOO)", "authorId": "18_SpringOwl", "authorName": "SpringOwl Asset Management LLC", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2015-12-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 83, "pageCount": 99, "prevPage": 82, "nextPage": 84, "slideType": "demand_list", "function": "state_demand", "density": "overcrowded", "nDataPoints": 12, "notes": "This is part of a multi-step activist proposal by SpringOwl Asset Management.", "elementsJson": [ "headline_text", "bullet_list", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dc-61315eb6ee44/83", "deckHref": "/decks/019dd923-622b-71dc-a6dc-61315eb6ee44", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-61315eb6ee44.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-61315eb6ee44#slide-83", "components": [ { "bbox": null, "kind": "callout", "text": "That's a grand total of $10 billion spent for which Yahoo has little to show", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2041-7259-a86a-3608fbf41cb0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.35 }, "kind": "list", "text": "That's a grand total of $10 billion spent for which Yahoo has little to show. Had they spent that money on buybacks in the first two years' of Mayer's tenure at an average cost basis of $20/share, Yahoo could have retired 450 million shares.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5ef819dc-5977-41c6-bde2-ec2210e747cf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.5 }, "kind": "list", "text": "That would mean that, even at today's currently depressed market cap levels, Yahoo shares would trade above $65/share instead of $35/share.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8c60f02a-6e11-4cd8-a203-9a0af79d24b3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.73 }, "kind": "list", "text": "This would reduce Yahoo's share count by 24% to 716 million shares outstanding and potentially increase the value of Yahoo's stock by $23/share.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9930df67-d190-47aa-858b-868fe063c4c5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.2 }, "kind": "list", "text": "Buybacks for the sake of buybacks don't create value. Yet, in the past 4 years, Yahoo has spent $3 billion on M&A, $4 billion on product development, and lost $2.5 billion on stock buybacks since 2013 on prices higher than the current stock price.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9f16fa38-b070-43b7-a522-8d14af865803", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.58 }, "kind": "list", "text": "At present, Yahoo has net cash of $5.5 billion; we favor seeing them taking this cash level down to their historically normalized cash on hand levels of $1.5 billion and using the additional $4 billion, plus another $4 billion in debt, and $1.8 billion realized from real estate sales on additional buybacks under $45/share.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eedfc588-1e9f-49ff-ab21-a122bf77b8c6", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "share price: $10 billion", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-2041-7259-a86a-3a1f11b987fe", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.05, "y": 0.9 }, "kind": "source-note", "text": "Source: SpringOwl Asset Management LLC", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d50b4947-2a71-4ffe-83e5-78da77d2bd27", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Step Seven: $10 Billion For Additional Buybacks", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff41b1d8-67ed-44d2-bcc8-5b203d047d2a", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "List presentation", "slug": "list-presentation", "agent": null, "layer": "slide", "matchId": "050e7147-a976-456c-8e45-ca33357783c1", "evidence": "The slide contains a list/bullet points with several items.", "confidence": 0.9 } ], "frameworks": [], "arcBeats": [], "loops": [ { "to": 84, "from": 83, "name": "Quick Win Big Bet", "slug": "47-quick-win-big-bet", "bestFor": "Transformation planning, 100-day plans, resource allocation", "matchId": "c349417e-4502-4cf2-addc-3f757173af0b", "evidence": "The document presents a big bet for Yahoo's future, including a $10 billion buyback plan.", "position": 1, "objective": "Present a big bet for Yahoo's future", "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap", "confidence": 0.6, "description": "Separate initiatives into immediate wins and longer-term strategic bets" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }