1 / 24

NASDAQ: YHOO

NASDAQ: YHOO. 2/28/2012 Turner Novak Mark Blazo. Buy 100 shares @ $21.31 $2,131 4.71% of portfolio. Yahoo Overview. Founded in 1995 Sunnyvale, CA 14,100 employees. Yahoo Today. 2 nd largest online advertising platform 240+ Million users. Personalized digital content

nelia
Download Presentation

NASDAQ: YHOO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. NASDAQ: YHOO 2/28/2012 Turner Novak Mark Blazo

  2. Buy 100 shares @ $21.31 • $2,131 • 4.71% of portfolio

  3. Yahoo Overview • Founded in 1995 • Sunnyvale, CA • 14,100 employees

  4. Yahoo Today • 2nd largest online advertising platform • 240+ Million users • Personalized digital content • Communications, Search, and Media • Not just a search engine

  5. Yahoo Tomorrow • New executive team • Hire/Buy talented employees/programmers • Transition from media to mobile • Monetize mobile offerings • Improve advertisers capabilities to create and manage their own ad campaigns across Yahoo’s network

  6. Q4 Earnings Call Takeaways • Revenue was flat • Earnings up • Lots of excess cash • Continue share buybacks • Continue acquisitions • Commercializing and monetizing products • Transition from display ads to mobile ads • Just under 200 million mobile users

  7. Q4 Earnings Call Takeaways • Currently 75 mobile apps • Reducing to “about 12” • Remodel the 12 apps that will stay in the portfolio • Continue acquiring companies between $10 - $100 Million to buy talented programmers

  8. New Management Team CEO - Marissa Mayer • Google’s 20th employee • VP of Search Products, User Experience, Local, Maps, and Location • Developed Google’s Search and Contextual Discovery • Very involved in hiring new Google employees • Part of 20 acquisitions at Google • Programmer – Unlike previous Yahoo CEO’s

  9. New Management Team CFO - Ken Goldman • Three decades of experience in software and internet companies • History of fiscal discipline and internal controls • COO – Henrique de Castro • Brought in to repair Yahoo’s relationship with big ad agencies • Built Google’s display advertising business from scratch • Monetized Youtube

  10. New Management Team VP of People – Jackie Reses • Experience in Private Equity investing in media and technology • Training and development of new employees • Firm grasp of acquisitions through PE experience • CMO – Kathy Savitt • CEO of Lockerz • CMO of American Eagle • VP of Amazon • In charge of worldwide marketing and branding

  11. Institutional Ownership • Greenlight Capital, David Einhorn • Predicted the downfall of Lehman Brothers • Exposed accounting and inventory problems at Green Mountain Coffee Roasters • First to discover disclosure changes at Herbalife • Third Point Capital, Daniel Loeb • Exposed previous Yahoo CEO resume blunders • Pitched for Mayer to become new CEO

  12. Strategy for Growth • Not moving away from media completely • Media Technology company • Tangible products, not just a website • Integrate products with users lives • Increase search market share • Bring in talented employees • Acquire small, “failed startups” with talented programmers

  13. Current App Portfolio

  14. Flikr vs. Instagram

  15. Investments in Other Companies

  16. Yahoo’s Value Core Business 21.44 x 29.6% = $6.35 per share • 13.2 • 11.7 • 3.1 • + 1.6 • 29.6%

  17. Yahoo’s Value • Bought 40% stake in Alibaba (Chinese Amazon) in 2005 for $1 Billion • Sold half of it for $7.6 Billion in 2012 • Remaining stake is valued at $7.6 Billion at current Total valuation of $38 Billion • Projected IPO by the end of 2014 • Expected to be valued up to $150 Billion

  18. Yahoo’s Value

  19. Risks • Strategic search alliance with Microsoft • No operating system of its own • Not necessary for apps • Many different platforms/apps make it difficult for Yahoo to appeal to advertisers • Lowering number of apps • Yahoo is a tech company • Also a media company

  20. Investment Thesis • Capable management team in place • Cash available to spur growth • Mobile use globally will continue to increase • There is no clear “Apple” of mobile products • Will it be Yahoo?

  21. Buy 100 shares @ $21.31 • $2,131 • 4.71% of portfolio

More Related