A Yahoo and Viacom investor has urged the boards of both firms to look for outside investments from strategic partners to improve the stock value.
In an article reviewed by Reuters, SpringOwl Asset Management managing director Eric Jackson said the companies would benefit from outside investment, citing Warren Buffett’s 2008 $5bn investment in Goldman Sachs.
The news agency quoted Jackson as saying: "Although some shareholders of both Yahoo and Viacom think that a simple sale or break-up of both companies is the best way to create value for shareholders, we believe that both companies could benefit from their own version of the "Buffett Convert."
Jackson said that if an outside investor puts money into both firms, the stakes of investors could dilute, but they would still be in a good position as the worth of their shares would go up.
Activist shareholders are targeting Yahoo and Viacom in recent months. Yahoo has been struggling to revive its core online advertising business.
Some shareholders allege that the efforts taken by Yahoo Chief Executive Marissa Mayer to restore the businesses did not yield better results.
Viacom is also facing a lawsuit, which alleges that its executive chairman, Sumner Redstone, is incapacitated.
Jackson suggested that Yahoo should move to Liberty Media, whose chairman John Malone is an expert at identifying tax efficiencies, or look to telecommunications firms such as Verizon or AT&T, which could also bring traffic to its properties.