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Yahoo! CEO To Outline Cost-cutting Efforts : Reports
[October 20, 2014]

Yahoo! CEO To Outline Cost-cutting Efforts : Reports


(dpa-AFX International Compact Via Acquire Media NewsEdge) SUNNYVALE (dpa-AFX) - Yahoo! Inc.'s (YHOO) chief Executive Officer Marissa Mayer is expected on Tuesday to outline cost-cutting efforts and give new details about how the company is evaluating possible acquisitions as the company faces pressure from Starboard Value LP, according to reports.



Mayer will announce the company's third-quarter results tomorrow, making her first public comments since coming under pressure last month from activist investor Starboard Value LP.

The reports said that Yahoo is considering acquiring one or more large technology startups with some of the $5.8 billion it made from the initial public offering of Alibaba Group Holding Ltd. (BABA).


The Wall Street Journal reported that Mayer is also likely to explain her recent decisions to lay off nearly 500 employees in India and Jordan as part of a broader effort to cut costs. Yahoo is "streamlining" its operations in foreign offices, which might involve a combination of closing offices, cutting jobs and moving workers to its Sunnyvale, Calif., headquarters.

Last month, Starboard urged Yahoo! to seek a possible combination with AOL Inc (AOL) as well as opportunities to monetize its non-core equity investments and cut costs. Starboard believed a combination between Yahoo's Core Search and Display businesses and AOL could result in up to $1 billion of synergies while also potentially facilitating the realization of value from Yahoo's non-core equity stakes.

Copyright RTT News/dpa-AFX

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