Starboard Sends Letter To Yahoo; Urges To Consider Combination With AOL

(RTTNews) - Starboard Value LP, a significant shareholder of Yahoo! Inc. (YHOO), announced it has delivered a letter to Yahoo CEO Marissa Mayer and Yahoo's Board of Directors, expressing concern over recent media reports that yahoo may be contemplating a large-scale acquisition.

Starboard reiterated that monetizing both of yahoo's non-core minority equity investments in a tax-efficient manner must be management's number one priority.

Starboard said it continues to believe that Yahoo must significantly reduce costs to improve profitability in its core business and should be considering a combination with AOL.

"We understand that you are not in a position to comment on media speculation. However, we expect that you and the Board will heed the advice of shareholders by expeditiously announcing your intentions regarding both of Yahoo's non-core minority equity investments and other actions to enhance shareholder value," Starboard said in the letter.