Yahoo! Inc (YHOO) Considers Selling Non-Core Assets Worth Up To $3B

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Yahoo! Inc. (NASDAQ:YHOO) is exploring the possibility of selling its non-core assets, patents and property worth around $1 billion to $3 billion, according to its chief financial official.

During the Morgan Stanley Technology, Media, and Telecom Conference, Yahoo CFO Ken Goldman said the company created a committee to find alternatives to its plan to spin off its core assets, and it is considering an immediate sale of assets.

Goldman said selling the company’s land, patents, property and non-core businesses are all on the table. According to him, Yahoo already sold or licensed patent worth more than $600 million over the past three years.

Yahoo is under pressure to create value for shareholders

Starboard Value is pressuring the company’s Board of Directors to implement significant changes and to consider a sale of its core assets to turn around Yahoo and create value for shareholders.

Last month, the Board disclosed its strategic plan to accelerate the company’s transformation and boost its revenue growth by $1.8 billion this year. Yahoo decided to cut its workforce by 15% and close its offices in Buenos Aires, Dubai, Madrid, Mexico City, and Milan.

The company also indicated that it is open to considering offers for its core assets. It was reported that Time Inc (NYSE:TIME is considering a bid to acquire Yahoo’s core internet business, which includes search, mail and news sites.

Time was reportedly contacting bankers regarding its intention to pursue a deal with Yahoo. Some people suggested that the magazine publisher could pursue a Reverse Morris Trust transaction with the technology company. Such deal means CEO Marissa Mayer will not be part of the company.

Yahoo Board and management are aligned

There had been speculations that a conflict between the management and Board of Yahoo.  Some people noted that Mayer hired Frank Quattrone, a legendary deal maker, to represent her during the sale process of the company’s core assets. On the other hand, the Board engaged the services of Goldman Sachs, JP Morgan and PJT Partners.

“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,” said Goldman on Thursday.