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Mark Mahaney of Citi Investment Research breaks down how Yahoo's recent management turmoil will impact shareholders.
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Scott -- outs as the CEO of Yahoo! stepping down over the weekend amid criticism that -- -- on his resume so is is good news for Yahoo! shareholders mark -- managing director.
-- Citigroup investment research joins us now by telephone mark thanks for joining us.
Lot of people just given up hope on Yahoo! at this points is there quick fix where do you think the company goes from here.
There's absolutely not a quick -- spot in this name if there had been London one of the last -- CEOs so we'll have to for five years would have figured it out.
They but there are date they are obvious solutions in the sense that there is a very significant stake it's probably worth ten to twelve dollars.
Per share to Yahoo! holders a very significant stake in Asia assets bad that could be sold.
There's cash on the balance sheet -- has not been this question please for buybacks is good or for dividend would have been nice to see this company paid dividends.
And then there's a display advertising business that's been significantly underperformed the market but you know with the right person in charge and Ross Levinson may be that person that could turn around.
Yes I think -- put Harry Wilson on the board he's a really Smart guy a great turnaround guy but the question still remains does anyone have a strategy.
In the group what do you think.
And that's really we've been sort of like confused by the issue ever or distracted I should say by the issue of you know.
About this CEO's resume but -- question still remains about a basic strategy to bring this company back.
-- -- let me try this -- you know I think there's two strategies the company could pursue a growth strategy.
And the value strategy and our growth strategy is try to find the right.
Sort combination of content and applications.
Yahoo! and the right linkages to social networks six -- that really get people enthusiastic about Yahoo! again did it.
Keep user growth in the re accelerating at the business and you know lot of money index.
R&D into -- content deals in the market needs better that's the growth strategy that we've seen a couple tried a couple of different ways.
Without having much success we've had no growth in free cash flow from this business for four years -- that's a pretty impressive feat in the secular growth in the streets.
Took over there's another strategy however that's the value strategy.
He needs somebody comes -- start selling off some assets here we continued to reduced down the overall number of employees.
We pay a dividend would buy back more stock and -- more aggressively tried to -- those Asia appetite of the last thing.
Everybody assumes that they can do I think -- obviously the very difficult negotiation and by the way Yahoo!'s news losing negotiating leverage.
Each here so it's going to be harder deal could do in terms that are -- -- -- shareholders.
Alright mark thanks lot market -- Citi Investment Research.
