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Technology / Networks

Yahoo told to stop wasting money by investor Canyon Capital

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.

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"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.

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.

This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

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