Activist investor Starboard Value LP said Monday that Yahoo Inc.'s decision to spin off its stake in Alibaba Group Holdings Inc. was a "good first step", but insisted there are other opportunities to create value for shareholders. In a letter to the Yahoo board, Starboard urged the Internet company to cut its "bloated" cost structure, explore ways to monetize its intellectual property and real estate assets, separate the Yahoo Japan stake in a tax-efficient way, and return $3.5 billion to $4.0 billion of excess cash to shareholders via share buybacks. "Yahoo's current valuation discrepancy cannot be solved just with the Alibaba spin-off," Starboard said in a statement. "Yahoo is in need of a major overhaul." Yahoo shares were up 0.7% in early trade, but are down 14% in the last three months, while the S&P 500 has gained 0.6%.
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