SpringOwl investment in Yahoo! in 2015

SpringOwl Asset Management invested in Yahoo! in 2015 and made public a presentation for it. If you are interested to learn about how hedge funds write presentations, here is one for you to learn from.

About the SpringOwl deck

All information is public information (I won’t share anything confidential on this site).

About the deal

In 2015, SpringOwl Asset Management, an investment firm, took a significant position in Yahoo!, signaling a push for change within the company. The investment was part of a broader activist campaign led by SpringOwl’s Eric Jackson, who advocated for a major overhaul in Yahoo!’s strategy and management to unlock shareholder value. SpringOwl circulated a detailed presentation criticizing Yahoo!’s leadership under CEO Marissa Mayer, pointing to the company’s declining core business performance, excessive spending, and lack of clear strategic direction. Among their recommendations were cost-cutting measures, asset sales, and potentially replacing the CEO and board members to better align the company with its core competencies and improve financial performance. This intervention reflected a period of intense scrutiny and activism targeting Yahoo!, as investors grew increasingly frustrated with the company’s direction and performance, advocating for significant changes to revive the tech giant’s fortunes.

About SpringOwl Asset Management

SpringOwl Asset Management LLC is an investment firm known for its focus on the gaming, lodging, and technology sectors. Founded by Jason Ader, the firm employs a value-oriented approach to investing, seeking out undervalued assets and companies with growth potential. SpringOwl is particularly active in the gaming industry, where it leverages its expertise to identify opportunities for value creation. Additionally, the firm is known for its shareholder activism, where it engages with company management and boards to advocate for changes aimed at unlocking shareholder value. SpringOwl’s investment philosophy emphasizes thorough research and analysis, with a focus on long-term value creation. The firm continues to be an influential player in the investment landscape, particularly within its targeted sectors.

About Yahoo!

Yahoo! Inc. is a well-known American web services provider headquartered in Sunnyvale, California. Founded in 1994 by Jerry Yang and David Filo, Yahoo! began as a web directory and quickly evolved into one of the most prominent internet companies of the late 20th century. Yahoo! offered a wide range of services, including a search engine, email, news, finance, sports, and entertainment content. The company’s search engine was one of the most popular in the early days of the internet. Yahoo! also made significant acquisitions, such as Geocities, Flickr, and Tumblr, expanding its portfolio of services and platforms. However, Yahoo! faced challenges in the rapidly changing landscape of the internet, including competition from Google and Facebook. In 2017, Verizon Communications acquired Yahoo!’s internet business, including its email service, news, and sports websites, while the company’s stakes in Alibaba Group and Yahoo! Japan were transferred to a new entity called Altaba Inc. Today, Yahoo! continues to offer a variety of digital content and services under the Verizon Media umbrella, including Yahoo Mail, Yahoo News, Yahoo Finance, and Yahoo Sports.

Want to see more?

Head here to see the rest of the collection:

Hedge Fund Presentations