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January 18, 2016updated 31 Aug 2016 10:00am

Yahoo told to stop wasting money by investor Canyon Capital

News: Yahoo says Canyon Capital's letter to the board misinterprets facts.

By CBR Staff Writer

Yahoo said that a letter sent to its board from the investor Canyon Capital included misinterpretations about the firm.

Canyon Capital wrote in a letter seen by Reuters, that Yahoo’s board and management team have invested more than $3bn on acquisitions to which, depending on its stock price, the market appears to ascribe negative value.

The company urged Yahoo not to waste any additional capital and to prioritise a sale of its core business, a part of its assets, or the entire firm.

Responding to the Canyon Capital letter, Yahoo said: "Our board and management team have been and remain firmly committed to acting as good stewards of capital and delivering sustainable shareholder value.

"We will share details on our future plans for Yahoo on our upcoming earnings call."

The letter follows activist shareholder Starboard Value’s increased pressure on Yahoo for a leadership change.

Yahoo is cutting its workforce amidst growing pressure from shareholders to improve profitability.

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The company is planning to slash about 10% of its more than 10,000-strong workforce, with the media and platforms-technology groups, as well as its European operations, set to be targeted.

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