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Investor Starboard Pushes Yahoo to Spin Off Japan Business

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Activist investor Starboard Value LP applied more pressure on Yahoo! Inc., pushing for a spinoff of its Japanese investment after the Web portal agreed this year to exit its position in Alibaba Group Holding Ltd.

In a letter Monday to Yahoo Chief Executive Officer Marissa Mayer, Starboard said the Internet company could unlock $11.1 billion, or $11.70 a share, of stockholder value, in part with a tax-efficient spinoff of its stake in Yahoo Japan Corp. The Sunnyvale, California-based company owns about 36 percent of Yahoo Japan valued at about $8 billion. Yahoo also should cut costs and buy back $3.5 billion to $4 billion in stock, the New York-based hedge fund said.