Yahoo CEO Marissa Mayer is secretly pitching a “package deal” that would sell Yahoo’s core business under the condition that she remain CEO, according to a report by the New York Post’s Claire Atkinson and James Covert.
The deal is being pitched by Frank Quattrone, the famous banker Mayer has hired, the report said. It didn’t say the number of interested parties in the Mayer-Quattrone deal, but noted that Yahoo has received over 40 “expressions of interest” for its core business so far.
The report is the latest development in a a tumultuous period at Yahoo. Some media reports have painted a picture of dysfunction within Yahoo’s board of directors, as Mayer and some of the other directors each pursue different plans to sell the struggling company.
Yahoo recently formed an independent committee to explore the sale of its internet business, and hired Goldman Sachs, JPMorgan, and PJT Partners to represent the company in a potential deal. Mayer, on the other hand, is working with Quattrone.
Yahoo CFO Ken Goldman, during a talk at a tech conference held on Thursday, told investors that the reports of a rift are nonsense.
“I want to make it very clear that between management, Marissa, myself, the rest of the management team, and the committee, and the board, we’re actually all aligned in terms of what creates the best shareholder value, and that will be the ultimate criteria of what we end up doing,” Goldman said.
He continued, “I want to make it very clear the Strategic Review Committee has hired advisors. Those are the only advisors that are working on our collective behalf relative to the spin work and strategic alternative work. Period.”
Yahoo is under pressure by activist investor Starboard Value to make changes across the company, including a the sale of its core business, an overhaul of management, and cuts to its cost structure. Starboard said in a letter earlier this year that it would launch a proxy fight if its demands are not accepted.
Yahoo is also playing with the idea of packaging its core business with its Yahoo Japan ownership stake for a potential deal, Bloomberg reported Thursday.
The month-long period to nominate new board members started last week, but there haven’t been any submissions made yet. The Post report said that Yahoo’s board will meet with Starboard for the first time next week.
Yahoo was not immediately available for comment.
As reported by Business Insider