Dive Summary:
- Nicholas Carlson at Business Insider writes that Yahoo's decision to hire Marissa Mayer as its new CEO instead of interim CEO Ross Levinsohn marked a choice to become a product company instead of a content creator, and Carlson questions that move based on the high stock prices, median next month PE multiples and median projected long-term EPS growth rates at media companies including CBS, Disney, News Corp, and Comcast.
- Apple, Facebook, Google, and Netflix, by contrast, currently see stocks trading significantly under all-time highs, contracting median next twelve months PE multiples and downward-trending median projected long-term EPS growth rates.
- Those median projected long-term EPS growth rates for media companies, Carlsson reports, are at 14% compared with 9% four years ago, while the same stats for the second group of companies are at 19% versus 22% four years ago.
From the article:
The reason the Yahoo board hired Marissa Mayer as its CEO instead of sticking with interim CEO Ross Levinsohn was that Mayer, a "products person," planned to return Yahoo to its "tech company" roots, and Levinsohn was going to make it more into more of a content-creating media company. ...
