Yahoo!'s CEO Hosts 2013 Annual Meeting of Shareholders - (Transcript)

| About: Yahoo! Inc. (YHOO)

Yahoo! Inc.'s (NASDAQ:YHOO)

2013 Annual Meeting of Shareholders - (Transcript)

June 25, 2013 11:00 AM ET

Executives

Michael Yo - OMG! Insider! Host

Maynard Webb - Interim Chairman

Ron Bell - General Counsel

Marissa Mayer - Chief Executive Officer

Kenneth Goldman - Chief Financial Officer

Markus Spiering - Flickr

Analysts

Michael Yo

Hello, good morning everyone, how are you? Okay, c'mon you can do better than that, good morning everyone how are you?

All right, first of all, give yourselves a round of applause for being here. We need some activity in this room, yeah. Today is a great day. Today is a great day. Now, my name is Michael Yo. I have a show on Yahoo! It's called the The Yo Show on Yahoo! I'm on our show, OMG! Insider on CBS. So you can check us out every night but today the main reason we're here, Yahoo! is all about inspiring and delighting users, advertisers and of course shareholders, you guys.

Now, since last year, this has been an amazing year. We have a new CEO, new executive team, amplifying the culture and making Yahoo! the place that everyone wants to be, every time you turn on your TV, they're talking about Yahoo!, whether it's MSNBC, whether it's CNN, Yahoo! is always on. Plus tons of momentum and products, acquisitions and also excitement about the future.

Now it's been an awesome year. Whole new focus on this company it's all about products and innovation. Now, I want to start this off in a fun way because I want you guys to be involved with me. So I have some T-shirts to give out because I'm going to ask you some trivia questions since a lot of you guys are shareholders, you should know this stuff and if you don't know it, I will be very upset. First question, just raise your hand, just raise your hand, don't shout it out, you already know, sir, huh? I mean, wow, what's the answer?

Unidentified Shareholder

What's the question?

Michael Yo

See, you need to know the question first. Come on, all right, you're --

Unidentified Shareholder

You said raise your hand, you didn't?

Michael Yo

I know, you're listening, sir, I like that. You're a very smart man. Alright, the first question is what was the original name of Yahoo!? Raise your hand. What was the original name of Yahoo!?

Unidentified Shareholder

Yahoo!

Michael Yo

Is that -- Yahoo!? Yahoo!?

Unidentified Shareholder

Yahoo!

Michael Yo

Yahoo!? That's wrong. But you know, I'm going to give you a T-shirt for just raising your hand, and being first to say, okay, you raised your hand. What was the name sir? You don't know, no that was not the name of the Company, I don't know, but that's a good guess, we'll give you a T-shirt too. What's your name that just guessed I don't know?

Unidentified Shareholder

[Shelley]

Michael Yo

[Shelley] thank you for coming out, I appreciate it. Okay, sir?

Unidentified Shareholder

[Yuhoo].

Michael Yo

[Yuhoo?] Guess what? That's wrong. It was called Jerry and Dave's Guide to the World Wide Web, that was the original name, but we'll going to hook you up with a T-shirt too. Now, second question, we need a winner on this one. What does Yahoo! stand for?

Unidentified Shareholder

[I don't know].

Michael Yo

Who said I don't know?

Unidentified Shareholder

I'm here.

Michael Yo

Okay. Sir what's your name?

Unidentified Shareholder

Ray.

Michael Yo

All right, Ray, what's it stand for?

Unidentified Shareholder

Yet Another Hierarchical Officious Oracle.

Michael Yo

Yeah, give a round for Ray. Ray, let me tell you something, I was so nervous to say that full name, I'm glad you got it right because now don't I have to say it. Thank you so much. Now this one a lot of people should get may be, feel free to raise your hand, what was the original color of the Yahoo! logo?

Unidentified Shareholder

Yellow.

Michael Yo

Way in the back, sir what's your name first?

Unidentified Shareholder

Michael.

Michael Yo

Michael, I like that name. We've got a good names, yeah I like it, yeah, all right, and what was the name?

Unidentified Shareholder

Black [one].

Michael Yo

It was black, it no it wasn't black logo, no but we're going to hook you with a shirt. Yes, ma'am what's your name?

Unidentified Shareholder

Green.

Michael Yo

Green, your name is green, all right. Green, that is wrong, Green. Yes, ma'am?

Unidentified Shareholder

Orange.

Michael Yo

Orange?

Unidentified Shareholder

Yes.

Michael Yo

No. In the back, you raising your hand with the green shirt like [awwwh]

Unidentified Shareholder

Red.

Michael Yo

Red. Yes, give it out, what's your name ma'am?

Unidentified Shareholder

[Carla].

Michael Yo

All right, give it up. Yes, yes, yes. Now, I'm going to ask you this question and I don't know the answer to this but Yahoo! recently rolled out a whole new Flickr design and experience in. And it holds up a one terabyte of storage for each person, does anybody know how many photos are in the terabyte, now this is the quality of an average smartphone photo, just the closest we'll go with, just how many photos is on the terra, how many?

Unidentified Shareholder

500,000.

Michael Yo

How many?

Unidentified Shareholder

500,000.

Michael Yo

500 -- what's your name?

Unidentified Shareholder

Ali.

Michael Yo

Does anybody want to go up or down on it, we're going to make this a game show, he says 500,000 start a bid, what do you think?

Unidentified Shareholder

Up.

Michael Yo

Up. Okay, guess a number?

Unidentified Shareholder

100,000.

Michael Yo

A 100,000 that would be down, sir. All right, all right. We're going to give you a shirt for the great answer though, and we're going to give you shirt. It's actually 537,000 photo, so there you go. You know you both are close. All right, so I'm going to breakdown, what we're going to cover today so everybody is on the same page, first up we're going to have Interim Chairman of the Board, Maynard Webb, he will introduce the Board of Directors and officially kick off the meeting then you will hear from Yahoo!'s General Counsel Ron Bell, who will conduct the formal business. After that, we'll give you the good stuff, CEO Marissa Mayer will talk about the Company's vision and Yahoo! is making daily habits more inspiring and of course, entertaining then it's up to you guys, you guys take over and we finally open up the meeting with the Q&A.

So everybody on the same page, you all got it down?

Unidentified Shareholder

Yeah.

Unidentified Shareholder

Yeah.

Michael Yo

You're ready and you're excited to be here?

Unidentified Shareholder

Yes.

Michael Yo

All right, let's start it off now. Maynard Webb, Interim Chairman of the Board since April of 2013, Founder of Web Investment Network, which is a seed stage venture capital firm, Board member since February of 2012, Chair of Compensation Committee since May of 2012, he serves as a Chairman of the Board for LiveOps and Director of salesforce.com, brings outstanding technology leadership and experience to Yahoo!'s Board. Here's a fun fact about Maynard and a maybe a lot of [Euro] fans too, he's an avid 49ners fan. Yeah, anybody else a 49ners fan out there? All right, alright well, he's excited about the new stadium and the Yahoo! partnership enhancing the in-stadium experience for the 49ners please welcome to the stage, Maynard Webb.

Maynard Webb

Thank you, Michael, great introduction and enthusiasm. Welcome to the 2013 Annual Meeting of shareholders. It is now 8:17 and the meeting will please come to order. I'd like to introduce the other members of the Board who are present today, each member of the Board other than Marissa Mayer, our President and CEO is an Independent Director. I am honored to be serving alongside each and every one of them.

First, let me introduce Marissa Mayer our President and CEO, who's been a Board member since July, 2012. Next, John Hayes, John, the Executive Vice President and CMO of American Express and he's been a Board member since April 2012. Sue James, Sue is the new [direct] partner of Ernst & Young and Chair of Yahoo!'s Audit and Finance Committee and a Board member since 2010. Max Levchin, Max is a Chairman and CEO of HVF, LLC and a Board Member since December of 2012. Daniel Loeb, Dan is the founder and CEO of Third Point LLC and a board member since May 2012.

Tom Mcinerney. Tom is the former CFO of IAC and a board member since April 2012. Harry Wilson. Harry is the founder, Chairman and CEO of MAEVA Group LLC and a board member since May 2012. Michael Wolf. Mike is the CEO of Activate Strategy and a board member since May 2012. Also Peter Liguori who is unable to join us today is a member of our board and he is the CEO of Tribune Company and a board member since April 2012.

I would like to take this opportunity to thank Fred Amoroso who served as Chairman of the board until April 2013 and decided not to stand for reelection. During his service as our Chairman, Fred exhibited outstanding dedication to Yahoo! and its shareholders and assisted the company during a critical time of positive transformation.

I would also like to recognize several members of the Company’s senior management team who are in attendance today. David Filo. David is our co-founder who continues to be actively engaged in our company today; Ken Goldman, our Chief Financial Officer; Ron Bell, our General Counsel & Secretary, and Adam Cahan, our Senior Vice President of Mobile and Emerging Products.

As Marissa will share with you after the formal business agenda, it’s been an exciting year at Yahoo!, we want to create change and inspiration. This team and the rest of the Yahoo!’s talented executives and employees work diligently to continue Yahoo!’s tradition of goal innovation.

Now I would like to introduce our outside representatives, Jennifer Attubato from Computershare Trust Company. This is Yahoo!’s transfer agent who will serve as the Inspector of Elections for today’s meeting. She will tabulate the results of the voting. I would also like to introduce Cory Starr, Yahoo!’s other partner at PricewaterhouseCoopers LLP. This is Yahoo!’s independent registered public accounting firm.

Only shareholders of record as of the record date for this meeting and individuals who hold the legal proxy are entitled to vote. I would like to point out that our rules of conduct for the meeting are printed on the reverse side of the meeting agenda. I call your attention in particular to those rules and imposed time and other limitation on shareholders addressing the meeting. We would appreciate your being considerate to your fellow shareholders.

At this point, I will turn it back over to Michael to introduce our next speaker.

Michael Yo

Thank you so much. All right, let’s keep this thing moving here. Next up Ron Bell, Yahoo!’s General Counsel and Secretary, who will lead us through the formal business of this meeting. Now just tell you little bit about, Ron Bell is the General Counsel and Secretary of Yahoo! Inc. where he oversees the Company’s worldwide legal compliance and legal operations.

Ron has been at Yahoo! for nearly 14 years in a variety of legal management roles. Here is the fun fact about Ron, he has a rich collection of tech memorabilia including a mid-condition copy of the 1999 Yahoo! Annual Report, which was written in the form of postcards, it was written on postcard. Now the report votes that Yahoo! reaches 100 million users worldwide, now if you look at us now we are 7 to 10 times that amount down.

So, so much has changed since then. And just to put it in perspective the hottest technological item out at that time was the Motorola flip phone, so that was pretty far back. Please welcome to the stage right now, Ron Bell.

Ron Bell

We have affidavits from Computershare stating that on May 7, 2013 each shareholder of record at the close of business on April 26, 2013 was sent either a notice of internet availability of proxy materials or notice of this meeting together with the proxy statement, annual report, proxy card and other material or information that is necessary to vote at this meeting.

A copy of the affidavits, the notice of the meeting and the accompanying materials will be included in the minutes of the meeting. Ms. Attubato has examined the proxies received and she reports there is an over 50% of common stock entitled to vote at this meeting are present in person or by proxy. Therefore, a quorum is present and we may proceed with the business portion of our meeting, which I am sure is a relief to everyone.

We will vote by ballot today. If you have already submitted a proxy on the Company's proxy card or by phone or via the internet and you do not intend to change your vote, then it’s not necessary that you complete a ballot at the meeting today. If you have not already voted or if you wish to revoke your proxy and change your vote, please raise your hand now and we will give you a ballot to use for voting this morning. However, we urge you to let your proxy stamp. Okay, we have some over here done.

Please also note that if you hold your shares beneficially in street name, you may vote your shares in person at today’s meeting only if you have a legal proxy from the broker, bank or other nominee that holds the shares giving you the right to vote the shares today.

In addition, if anyone in the audience is holding a signed proxy card that you wish to file with the Inspector of Elections, please raise your hand now as well. Okay. Ms. Attubato will collect the proxy cards and ensure that the votes are included in the final tally. Anyone else have their hand up and waiting for materials, okay, great.

There are five items of business to be brought forward before the shareholders this morning. Each of the proposals is set forth in the Company's proxy statement. After all of the proposals are formally introduced before the meeting for consideration, we will open the polls for voting and we will also open the floor for comments on all of the proposals. At that time discussion will be limited to the proposals and issue. We will have a general Q&A period at the end of the meeting after we complete the official business.

The first proposal today is the election of 10 directors to serve until the 2014 annual meeting of shareholders and until their successors are duly elected and qualified or their earlier death, resignation or removal.

The current board of directors is nominated and favors the election of the following persons John Hayes, Sue James, Max Levchin, Peter Liguori, Daniel Loeb, Marissa Mayer, Tom McInerney, Maynard Webb, Harry Wilson and Michael Wolf. These nominations are now brought before the meeting. The company has not received valid advance notice of any other nominations, and therefore, the nominations are now closed and this proposal is brought before the meeting.

The second proposal is a nonbinding advisory vote to approve the compensation of the Company's main executive officers as discussed in the Company's proxy statement. As further described in the proxy statement, shareholders have been asked on the following resolution which I will ready to you now. Resolved that the compensation paid to the Company's main executive officers as disclosed in the proxy statement pursuant to the SEC’s executive compensation disclosure rules, which disclosure includes the compensation discussion and analysis, compensation tables and narrative discussions that accompanies the compensation tables is hereby approved. This proposal is now properly before the meeting.

The next matter being submitted to shareholders for action is the proposal to ratify the decision by the Audit and Finance Committee of the Board of Directors to appointment PricewaterhouseCoopers, LLP as the Company's independent registered public accounting firm for the fiscal year that ends December 31, 2013. Yahoo!'s Audit and Finance Committee has responsibility for appointing the independent registered public accounting firm for the company.

Since its inception, the Audit and Finance Committee has consisted entirely of Directors or independent of corporate management. The Audit and Finance Committee has had direct access to both the outside auditors and the internal accountants. The Audit and Finance Committee has further had an opportunity to evaluate PricewaterhouseCoopers, LLP and has recommended that the shareholders ratify the appointment of PricewaterhouseCoopers, LLP as the Company's independent registered public accounting firm. And to audit the financial statements of the company and it's subsidiaries for the fiscal year that ends December 31, 2013. This proposal is now properly before the meeting.

The fourth proposal is a shareholder proposal, included in the proxy statement from Jing Zhao. I am informed that Mr. Zhao's representative Miss [Chan Wu] is present today. Miss Wu, welcome to the meeting. If you wish to make a brief statement regarding the proposal then please step up to microphone and proceed with your statement. We will ask that the statement be limited to three minutes since the proposal and supporting statement have been presented already in the Company's proxy statement.

Unidentified Shareholder

Yeah, ladies and gentlemen, I am friend of Jing Zhao, I stand here on behalf of Jing Zhao. I hope you will support this report because the Chinese people need your support, China's woman and the children need your care. Chinese democracy movement need your support, I think also on behalf of women and the children in China, I quote to you please [save us] thank you for your support and the life, I'm saying god bless your company. I believe you will be blessed. Thank you.

Ron Bell

Thank you. Mr. Zhao, couldn't be here today, unfortunately. His son is graduating from college today. So we extend our warm congratulations to the Zhao family. This proposal was previously made in accordance with the proxy rules and the Company's by-laws and is deemed duly presented at this meeting.

The Board of Directors has included in the proxy statement in opposition to the shareholder proposal for the reasons set forth in the proxy statement the Board believes this proposal was not in the best interest of the shareholders and accordingly has recommended that shareholders' vote against this shareholder proposal.

Finally, today those are included in the proxy statement from Mr. Michael Loeb, I am informed that Mr. Loeb's representative [Nicolas Zabo] is present today. Mr. [Zabo] welcome to the meeting, where are you There you are, okay, great. If you would please step to the microphone and proceed with your statement, we ask that your statement be limited to three minutes, since the proposal and the statement have been presented in full on the Company's proxy. You have a floor sir.

Unidentified Shareholder

Good morning. Mr. Chairman, members of the Board and shareholders. I am Nicolas Zabo, I am here on behalf of fellow shareholders Michael Loeb, of filer of proposition five, seeking greatest transparency of Company's political spending. Mr. Loeb and I are members of responsible wealth whose 500 members are concerned about the growing income and wealth inequality in this country. We believe that political spending fuels inequality.

Public attention through corporate political contributions reached a new level of intensity. An analysis of the 2012 election cycle by the Federal Election Commission showed that outside groups spent $1.3 billion on political campaigns setting a new record. There is a lack of accountability and the solution is simple, disclosure. Just as Kennedy supported this idea, you can hear, okay, I'm sorry, I better step closer.

Just as Kennedy supported this idea in his final decision of the citizen's united case, through disclosure he said, shareholders can determine whether their corporation's political speech advances that corporation -- well it advances their corporations interest in making profits and citizens can see whether elected officials are in their pocket of so called [muddy] interest.

The current public reporting system provides a best -- a partial picture of the Company's political spending. Currently Yahoo! does not disclose any information on its political spending from corporate funds other than a brief statement in its code of conduct for employees. The most significant voluntary disclosure to date has been the last proxy statement in opposing our resolution.

The only way we to get full accountability of Yahoo!'s contribution to the Company's -- for the Company to disclose them as many companies are choosing to do. More than 118 public U.S. companies and more than half of the S&P100 have already implemented what this resolution ask for. These companies include Merck, Microsoft, [Aflec, and XO], disclosure of political spending from corporate funds is difficult to do, not difficult to do and has become a mainstream of corporate governance.

Yahoo! Board of Directors has a duty to ensure that the company assets are being used to further the long term interest of their firm. When Yahoo! supports the political activity of trade association or other political organizations, or uses funds of direct political contributions, it is appropriate for the Board and the shareholders to question what policy positions are being for them and whether these contributions are in the Company's of interest.

Ron Bell

Your time is up. Your time expired, I'm sorry.

Unidentified Shareholder

Just -- I'm almost done.

Ron Bell

Okay, please wrap up. Thank you

Unidentified Shareholder

Yeah. Via full disclosure of political contribution -- one cannot asses that these spending are appropriate, we urge you to vote for proposal 5. Thank you.

Ron Bell

Thank you, Mr. [Zabo], thank you for coming this morning. This proposal was previously made in accordance with the proxy rules and the Company's bylaws and is deemed duly presented at this meeting. The Board of Directors has included in the proxy statement, a statement of opposition to this shareholder proposal for the reasons that are set forth in the proxy statement. The Board believes this proposal is not in the best interest of the shareholders, and is recommended that the shareholders to vote against it. This concludes the introduction of all the proposals to be presented at this meeting. The board's position on all five items of business before this meeting are now -- are set forth in our proxy materials.

Accordingly, I'm not going to take everyone's time by restating them in detail. Please note that the Board of Directors recommends a vote for each of the directors nominated, for the approval on an advisory basis of the Company's executive compensation, for the ratification of the appointment of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm, against the shareholder proposal regarding the social responsibility report for the reasons that are set forth in the proxy statement, and against the shareholder proposal regarding political accountability and disclosure also for the reasons set forth in the proxy statement.

There being no other proposals, we are now opening the polls to vote and we will open the floor for comments on the proposals. It is now 8:35 Pacific Time. If you are voting by ballot, please mark your ballot now by indicating your vote. Again if you've already submitted a proxy card and do not intend to change your vote, you do not need to submit a ballot at this time. If anyone needs a ballot, please raise your hand.

On over here, after your vote, please do two things, sign your name in the way in which your shares are registered or in the way in which it appears on the legal proxy from the shareholder of record, and two, put your name below the signature. Okay, finally, please raise your hands when you're done so that the inspector can collect the ballot from you. If you are voting today, pursuant to a legal proxy and if not yet handed in your legal proxy, please also hand it to the Inspector of Elections with your ballot. Please keep your hands up.

While the shareholders are voting, we'll open the floor up for comments on the proposals only. I remind you we will have more general comment and questions period at the end of the meeting. If you would like to speak during the comment period, please come to a microphone and wait to be recognized. Please identify yourself by giving your name and the number of shares of common stock that you own. Please be brief and limit your statements to two minutes. Once again only comments that are related to the proposals that I have read to you will be permitted at this time. Other matters can be addressed in the general Q&A -- answer session to follow, sir.

Unidentified Shareholder

Thank you, my name is [Sheldon Ulrich]. I don't own enough shares. I'd like to comment on the proposal by Mr. Loeb on political contributions. This proposal was submitted before we learned that the Internal Revenue Service of the United States was attempting to suppress free speech and political speech. The proposal by responsible wealth, their campaign is to increase taxes on anybody who can afford to pay taxes, so that the government can waste more of our money. The proposal intends to have you disclose if you give money to organizations like the U.S. Chamber of Commerce, because the Chamber of Commerce is for free enterprise and responsible wealth is against free enterprise. They don't want you to contribute to ALEC, the American Legislative Exchange Council because ALEC intends to have people who are citizens vote and not non-citizens. So I hope that all of you vote against that proposal.

Ron Bell

Thank you, sir. Are there comments on any of the other proposals that are before or properly before the meeting at this time? Thank you, sir.

Daniel Loeb

I'd just like to comment on this public contribution matter. I served on the Board of Directors of much smaller companies than this but on a larger piece of that company than I do here. And as a formal Board member of that company, I recommend as much as you can keep the shareholders out of the political discussions in the boardroom, the better the company will do. And the reason for that is we hire these board members to know what they are talking about and we who don't have access to their information don't know what is going on, so we shouldn't have any knowledge in any (inaudible) is published to us is published to everybody and that does not necessarily work to the benefit of the company. So I recommend we support Board's proposal on this particular issue. Thank you for your time.

Ron Bell

Thank you for your comments. Are there any other comments, please? Please limit your comments to two minutes, of course. (inaudible).

Unidentified Shareholder

It'll be less than two minutes, it'll be quick to the point.

Ron Bell

Okay.

Unidentified Shareholder

I am from Chicago and my name is [George Polish] and my (inaudible) on compensation increases, I think they're getting a little too much now not producing enough. When you have person that's getting $36.4 million and is making Jimmy Diamond jealous because he's only getting $15 million, we're kind of little yet. We haven't produced anything for the shareholders. You haven't paid us a dividend, you haven't given us any money all you've given us is promises.

Ron Bell

Thank you, sir. I appreciate your perspective on that. Are there any other comments before we close? All right, okay, anyone who is still voting, please complete your ballots and raise your hands, so the Inspector can collect ballot from you. Great. Anybody else, raise your hands, (inaudible). It is 8:41 and the polls are now closed. Inspector of Elections is ready to report on the five proposals. Ms. Attubato, will you please revise the shareholders (inaudible)?

Jennifer Attubato

We have voting results are as follows. The 10 nominees for the election to the Company's Board of Directors have been elected. Proposal two to approve the compensation of the Company's named executive officers has been approved. Proposal three to ratify PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm has been approved. Proposal four regarding the social responsibility report has not been approved. Proposals five regarding political disclosure and accountability has not been approved.

Ron Bell

Thank you Ms. Attubato. We will file Form 8-K with the SEC within four business days we report the detailed voting results. I now declare the business portion of the (inaudible) meeting of the shareholders adjourned. I want to thank all of the shareholder who presented proposals in (inaudible) today as well as those of you from the audience who rose to provide comments. In a few moments you'll hear from Marissa Mayer and her other company representatives followed by general Q&A session.

I'd like to remind you that the following remarks may contain forward-looking statements concerning our strategic or product plans and other future matters. Actual results may differ materially from the results predicted in those statements due to potential risks and uncertainties described in our most recent Form 10-Q filed with the SEC. Thank you very much and now let me turn the floor back over to Michael Yo. Michael?

Michael Yo

All right. Marissa Mayer was named Yahoo!'s CEO President and Director in July 2012. Since becoming CEO of Yahoo!, she has been focused on making Yahoo! the best place to work, a company built on transparency and accountability. Under Marissa's leadership, Yahoo! has become the place to be. If you're an entrepreneur, who wants to work on grate products and make a difference in lives of hundreds of millions of people around the world. She has refocused the company on product innovation and fast execution and the momentum is undeniable. She was named one of Time Magazine's 100 Most Influential People and has been on the Fortune 50 Most Powerful Women in Business list for the past five years in a row.

I've been with the company before Marissa's arrival and I will say all the way in Santa Monica, the passion, the energy is infectious. She is the type of person that makes you want to come to work and get better every single day, and that's why I love working at Yahoo. We're going to show you a quick video and then Marissa will be taking the stage.

[Commercial]

Marissa Mayer

Welcome and good morning and thank you for joining us today. Flickr is just one of the many products we've recently released that we're proud of. I've been here at Yahoo! now for 11 months, we've been incredibly busy, we've done a lot. We had a great 2012 and we're off to a good start in 2013. And I wanted to take a few moments this morning, talking about the progress we've made, frame our product strategy and tell you a little bit about what's ahead.

We have been relentlessly focused on our users. We want to build products that delight and inspire them, and it's for us all of our growth is going to start with our users. When you look at our ecosystem, it starts with users, it leads to traffic and advertising and ultimately to revenue and these components ultimately form what we call the virtuous cycle of the consumer internet.

To put a finer point on it, when you build great products users come, they use them more, generate the impressions, advertisers find those impressions respond to that, ultimately with more demand higher prices, yielding revenue, which allows us to invest as well as to offer returns to our shareholders. And the idea here is to drive this chain reaction of growth through a series of products that we've identified that we want to make truly best in class.

We're focused on making the world's daily habits inspiring and entertaining and by daily habits we mean the things that Yahoo! has always been very strong at. News, sports, finance, mail, search our homepage and many of these are products that we've recently launched. We've been focused on mobile as an incredibly important trend and wave in our space. Today, Yahoo! has more than 300 million mobile users per month, it's been an incredibly impressive rate of growth.

We're committed to building mobile first and we're imagining our core products on the mobile platform. Weather it's one of the ones that released that we're most proud of. Our Weather application pulls in our photos from our photo product Flickr to help people not only see the weather but also to see that location in that type of weather. And when we look at both, our response from our users, we actually grown to be in the top five weather applications in the 121 countries. Last week that was 80, so the growth here and response has been just tremendous.

Our core Yahoo! App has been released and has gotten a great set of reviews, that said we actually are most proud of the fact that a small company we acquired, Summly which focuses on using natural language technology and machinery learning to generate summarizations with integrated into and Yahoo! app in just four weeks, allowing people to actually brows the news in small and mobile size bites easily on their phones.

We released a new mail product and in mobile that meant making sure that it was elegant, easier to use, and fast. And our daily active users are up 70% since launch. Our Flickr mobile application has a been featured in Apple's app store and heralded by Forbes as the best mobile app out there, not the best mobile photo app but the best mobile app out there. And we've seen an increase in mobile photo uploads 50% since launch. And just last week, we released a new Yahoo! sports application, which allows us to have a consistently brand experience across all of our platforms for Yahoo! sports.

Taking a look at the desktop, we've also had a lot of products that we released out that we're really quite proud of in terms of results. Released a new version of Yahoo! Mail, it's beautiful, elegant, easy to use also faster and user interactions on Yahoo! Mail, sending, receiving messages overall user activity is up 10%.

On our homepage, we re-imagined it, we made it faster, we made it more relevant, we added personalization and an endless stream of content. So you can get all kinds of information from the Yahoo! network and off network data in the Homepage personalized for you. And we drove up interactions on the homepage by 25% and increased engagement all over the Yahoo! network.

In May, we released Flickr, that corresponds to the video you saw at the beginning of my presentation. We're really excited about this release, it completely redesigned the interface, making it a much more photo centric, we offer a terabyte of storage and which has been now holds 537,000 average size photos and users responded in rows. A photo uploads across Flickr have been up 4X since launch and that's been sustained from more than a month. It's clear that Flickr's becoming large and that's been sustained for more than a month.

Two weeks ago, we redesigned our search page, putting our results front in center, higher on the page and delivering them faster and users are responding nicely here as well. Yahoo! has also been very focused always on content and we have some of the best content available on the web. These are just the smattering of the shows of what we have to offer and the type of content that we've been putting in to our platforms.

I will call just a few highlights. Last year we had a serious Burning Love went out in the second season. On Burning Love, it was met with wide critical acclaim, many people said it's the funniest show they've ever seen and it actually made the unusual leap from being online television series to being a broadcast television series.

In April, we inked a deal with Broadway Video for Saturday Night live content. Come September, we'll have the 30 year archive of Saturday Night Live content available on Yahoo! Our partnership is formed was formed last year with ABC News, has been giving us great content, all across the news sphere, in the political atmosphere, world events as well as a lot of collaboration with Good Morning America. That partnership is working extremely well for us in terms of usage and reach.

And finally we you put in place a really terrific show that brings all Yahoo! content to primetime, six days a week, the show that Michael is featured on OMG! Insider. We're really excited about this area of content. We're going to expand this great array of content.

On products, I want to make sure that we don't just talk about that and that we actually show them to you. We actually got (inaudible) Yahoo! too this morning that have worked on some of our recent releases and I would like to ask them to come up and demo the products. Starting with Lee, who is going to talk to us about Mail for tablets. Welcome Lee.

Unidentified Company Representative

Thank you, Marissa. So as you heard earlier, back in December, we launched Yahoo! Mail across four platforms simultaneously on the same day which was no small feat. Amongst that we included iOS and Android applications for the phones. We got a great response from my users, and you saw some of the information about the growth we've seen. We've also got great feedback and comments in the app Stores from the reviews one thing did stand out though, lots of users were asking where's my iPad version, so luckily we're already working on that and let me show you that today.

So this is Yahoo! Mail for iPad, it's a native application you can get from the app Store. When you first launch the app you get a very familiar looking feel, if you use the desktop or if you use the mobile phone version, things look similar, we refocused on lightening the interface, making it easy to use, letting the content, your emails be the focus of the product, or emails be the focus of the product.

We have a list on the left, so you can see that scrolling away that, that's infinite scroll, you can just keep scrolling through your email. We have a message view on the right, it's a very familiar, but what did realize was on the tablet people's behavior is different. So we looked to update you and we saw people are doing with tablet mail products. We saw that there was a really big use case around reading more email. We actually see that users read more email when they do on the device mobile phone, or on desktop, when they are on the tablet. So it's really optimized the experience around that.

So let me show you a new feature that we will launch with the tablet version Android and iOS that I am really excited about and we call it full screen or reading mode. Now I am going to email, there is a full set arrows on the bottom left. If I tap those I go into what we call our full screen reading mode. We get rid of all the user interface, we leave with just the content, the things that are important in your inbox. As you scroll through the mail, we bring up this little tool box here, if you use to any of the movie playing app or the photo browsing apps, this is familiar to you.

Also it was really cool is that I can just swipe through my email now like I am swiping through a magazine. I like this effect so much, I find myself idly playing with this sometimes. I just flick through this. I can scroll up and down these emails, I can move these emails. It's fully functional and it was really, really nice is what we can do with photos. So if I tap through here I sent myself an email earlier, this is just standard plain text email with some photo attachments, but what we can do on the iPad is we can blow this photos up really big and beautiful, so you can really enjoy them on this great screen. We had a tremendous response from this feature and I am really glad to show it you today. Thanks very much.

Marissa Mayer

Next I would like to welcome Marco who is going to talk to us about weather. Welcome Marco.

Unidentified Company Representative

Thanks, Marissa. So it's really been a pleasure to be working on weather for us. When we think about weather and the opportunity there, it's been fundamentally really the experience of redoing what is ultimately the most intriguing daily habit for us, right. When you think about that, it affects us in every way how you dress, where you go, even when you live. So when we thought about the opportunity of re-visioning that product we said what could we really do here because when you think about it, that's really been this just numbers and charts all this time.

But when you think about checking weather it's actually because you are thinking about a place the people there, the places you are going to go to and so we said what if you can take Flickr and amazing corpus of photos and users there and marry with Yahoo! Weather and so what I love to demo to you today is Yahoo! Weather for iPhone.

If you click and open up the app we start off with the beautiful backdrop of photos that describe that location as Marissa would say. It describes the condition. It describes the location and the time of today, so here you are in New York, we can look at Paris, we can look at Rio, beautiful photos that represent these locations. And as we say, well, that is all gorgeous, you can tell the weather there, but I really want weather information, well it is still the weather application, so you scroll down and we slowly take the photo out and fade it in the background, we bring out the data in the front and then you can immediately see it's still got the hourly, it's got the week days, it's got the details, everything you would expect inside of weather app, but also more.

The huge stormy weather you can take a look and see interactive maps and you could zoom in over Chicago, I feel sorry, that's a little tough over there in the weather. And you can see when, you can see temperature, you can see satellite coverage, where is the, where the cloud cover coming in and little moments of delight as well too in the application, if you could see.

Some of the interactions here, we put a little sprinkling of animations here to just make it a little delightful and you can say, oh, that's just gorgeous, and you could see the animation of the Sun and Moon. We're extremely excited to bring this to our users at Yahoo! and outside the company and the consumers around the world. This has been regarded extremely successfully. We've been so surprised and overwhelmed with the reactions and I think what Mark did the most actual and that I'm so proud of for the team as well too was that Apple recognized this, what the Apple design award just this past month.

And that is just a huge accomplishment for this team and for this company and I'm proud to have said that we had a part to do with those. So please give the video if you don't mind and take a look and see what we've actually done with the award when we got, when we received and we have a little fun with that.

[Commercial]

Marissa Mayer

Thank you, Marco. We're incredibly are proud of our designing work from Apple because design is key to this two building inspiring in delightful experiences. Congratulations on the top five app in 121 countries and next we would like to welcome up, Markus, who is going to talk about our new design for Flickr. Welcome, Markus.

Markus Spiering

Thank you, Marissa. So just about four weeks ago, we had a massive launch with Flickr and we changed three big things. First, we made Flickr bigger. Now, every user gets a free terabyte of space. This is basically a lifetime of photos in original quality and in full resolution.

Secondly, at the same day, we also released a completely a new android app making in addition to the iPhone app that we have which is highly rated and beloved, Flickr everywhere where our users are and then third, we gave Flickr a completely new and beautiful and photo-centric design which I like to show you now.

So what you see here is my photo stream. This has all of the photos I have on Flickr and you can see on the numbers since 2009, and I have almost 7,000 photos. 7,000 photos is a lot but if you actually think about it, it's 0.04 terabyte and I am uploading a lot and I can keep uploading at the same rate for the next 144 years and I will not run out of space.

In terms of the design, you see it's absolutely photo-centric. You can scroll and it looks beautiful, it is really fast and what we also really think about is the integrity of the image. In this view, we never crop an image. We never change the order. It's something that we are really, really proud of but Flickr is not only for your own photos. It's also for the photos of your friends, your family members or other creators and photographers on Flickr uploading.

So the way to consume is in our new homepage. The new homepage here on Flickr gives you an endless feed of images that are being contributed from the people and connected with on Flickr. These are my friends, family members or other photographers.

It's not only a beautiful experience to consume photos and again it's like an endless feed. But you can also engage with these images, right way. Like, it's a beautiful image, I add it to my favourites. I can say wow that's a great photo, and I can post this, as a comment. The really neat things also about Flickr is that you can share images not only with the people that you're connected with on Flickr, you can send them these images or you can share these images on Flickr for sure.

But you can also share them simultaneously on Facebook, on Twitter, on Pinterest and obviously also on Tumblr. Overall with a free terabyte of space, a life time of photos, really amazing mobile apps and the beautiful, new photo-centric design we believe Flickr is the place for the world photos. Thank you so much.

Marissa Mayer

Thank you. As you can see we're really excited about the momentum that we're building around our product launches and inside the company people like Lee Marco and Marcus are the people that we really due as our core. Companies with the best talent win. And that's why Yahoo! has been incredibly focused for the past 11 months on being the absolute best place to work.

We've kicked off a lot of initiatives 600 in fact over the last 11 months, they've been initiated either by management or by employees, to make Yahoo! a better place to work and people have been responding. We had great initiative, I want to briefly, all team, we have each Friday, we now have goal setting on the quarterly and annual level at the company division individual in teams, in team levels, and we have a great program on try out all of our new products inside with our 11,000 Yahoo's before we release them publically, so make sure we test all of our products ourselves before we put them out in the public space.

And the employees have been incredibly excited, this is one of my favorite quotes, there's an unquantifiable increase in spirit, pride and energy but estimated at a factor of least pie, we are engineers after all. And just to put a finer point on this really quantify what we are seeing people are really excited to come and work at Yahoo.

We've seen a huge rise in applications year-over-year by at least a factor of two and sometimes rise sorts of accurate five, in May we've had one week and week or we saw 10,000 resumes and applications to come and work at Yahoo! in a single week. And what was heartening facts and one of the things we're are seeing is that we call boomerangs, these are people who were at Yahoo! before have left and are now coming back because they are so inspired by our vision by the energy and momentum they feel inside the company. And year-to-date 12% of our new hires have been boomerangs.

Our focus on talent has positioned us to really step up our cadence on product development. We're building more beautiful and engaging user experiences in 2013 and we'll continue to do that. And we've built a strong culture around innovation and really bringing out products quickly and integrating in a way that really inspires and delights our users.

And we're committed to driving shareholder value. 2012 marks the first year of we've had since 2008 in terms of revenue ex-TAC and we're committed to more growth. We want to thank you the shareholders who have invested in us and stayed with us.

As you know we have an active buyback of this returning our Alibaba bill proceeds to our shareholders. We've returned $2.1 billion of shareholders in 2012, $850 million in 2013 before May 7 and we're continuing our commitment on the balance of the $700 million to date and this has generated notable returns for our shareholders. We have had over the past year from mid June of last year and mid June of this year, the best performing stock among all major industry players. We really appreciate the confidence that you our shareholders and the market have signaled in us, in our business, in our management team, in our agent assets and ultimately in our future.

And the future for us, returns us back to that virtuous risk cycle. It's really about bringing more users and more advertisers and generating more revenue and getting this chain reaction started and it's clear that we haven't started. For us, what we're going be to focused on is really product innovation in the mobile space with our new acquisition of Tumblr, focusing on some of course Search and Personalization.

We're going to work to continue to bring great content to our users in the form of both user generated content as well as opinion content and we also wanted to be focused on innovating in the monetization space, particularly in mobile and video.

And now I'd like to share and update Yahoo! style of everything we've been working on. Please go ahead and cue the video.

[Commercial]

Michael Yo

All right guys. Now the fun part, what we're going to do is open the floor up for questions for all of you now. You've hear the rules, basically if you want to ask a question, all you've got to do is to one of the mics, you have three minutes. So we want to get as many questions in as possible. So that's pretty much the rules of this engagement and I would let you know when we start running out of the time so let's try to get as many people, that have questions up, and is thee someone what actually will lead or do you just walking up the mics, okay, we've got it. We're already got some people, so just wait for your turn so you know look at the microphone and you know we'll have some fun here.

Marissa Mayer

For having introduced through (inaudible) we met them earlier (inaudible) Ron, our General Counsel, Ken Goldman, our CFO and Adam Cahan, our SVP our mobile and emerging products.

Michael Yo

Now, please before you ask your question make sure you state your name. So everyone knows who you are and then we can get it started. Sir, we'll start with you?

Question-and-Answer Session

Unidentified Shareholder

[Tony Mazapelly] shareholder. Five years ago you were at the Google Annual meeting on the stage with other execs and I asked the question why wasn't Google search with all its scale, power, resources not killing it off other competitors in the search area including Yahoo!, you were chosen the respond and you said, you are working on some things and you liked competition, competition is good, when I sat down in the audience the woman next to me said, she didn't answer your question, did she? But I knew you said what you meant. Today that she was on the other --

Marissa Mayer

It was a good answer.

Unidentified Shareholders

Now our company has 80% of our revenue is search and display and we have lots of competition in search Google is light years ahead, they make lots more money than anybody else, make products better than anybody really in display, Facebook is growing way faster than this company, has revenue twice our company in ads, display ads and they know users actual names.

Their are competitor and competition like that also hires great engineers from anywhere, they buy great companies, they do mobile like crazy, they do social and content competitive. So I am here today, because you recently said to analyst that you don't think R&D at Yahoo! spread too thin and that small groups could handle the job. If that's true, why at Google didn't you have small groups?

At Google they have 19,000 employees in R&D and you handled you over saw 6000. Yahoo have 3000 or so. So my question is, how can you forecast that this company in face of all the competition will be able to transform and be a growth company again in less than five or ten years and when it does transform into a modern and better monetized company, how will that be unique and interesting to already competitive and growing internet community?

Marissa Mayer

Thank you very much for your question. There is a phrase that I will try and deliver faithfully at this point, which is never underestimate the power of a small group and that no one else ever has changed the world. Everything starts somewhere and Yahoo! is the world’s largest start-up, always has been, was one of the regional start-ups here in Silicon Valley in the modern era. And I think that it always starts somewhere. We love that we have teams.

We have worked to change the product portfolio. There are some products that we decided not to invest in any further to take the depot and the resources from those products to actually increase the investments we are making and what you have seen is our core this morning. So we are making investments and we are going to continue to make investments because that’s what’s going to take to ultimately drive growth.

Five years ago I thought that I like competition because I do and I think that the fact that we are in an incredibly competitive space search, mobile, internet that’s part of the reason you want to have competition because also it benefits users. We also want competition because it means that everyone’s got a fair shop and with great people who have been working in the space understand it and have been doing it for years and have new insights that bring to the space everyday which is what you’ve just seen with our demos. That’s one of the reasons why I am really confident or we can take that knowledge, those insights and build them into great products and get that virtuous cycle really going.

Unidentified Company Representative

Okay, go ahead.

Unidentified Speaker

Good morning. My name is [Mariana Brady] (inaudible) 500 index funds which own over 200 share of the Yahoo! stock, I'm also a Walmart associate and I started working for the company in August 2004 as a cashier. As a single mother it is hard for me to support my family on a very low pay we receive and (inaudible). I started speaking out and trying to improve things in my own in 2011 and joined our Walmart in 2012. Five days ago Walmart illegally terminated me. Walmart appears to deny our right of basic freedom of speech. So I have to ask you, are you going to bring Yahoo! values to Walmart or Walmart values to Yahoo!? Right now Walmart actually reflect badly on you and on Yahoo! So, I'm here on behalf of my serving Yahoo! shareholders to ask you Marissa Mayer to not just to help me and my coworkers get our job back but to also to use your role as Walmart to make the company stop these illegal firing and to finally meet with us. So we can share our concern with you. Can you please explain how you intend to deal with this matter, will you please meet with us?

Marissa Mayer

So first of all I'm sorry and also I would say that I'm sorry because we're here to address this morning is Yahoo! business and whether it’s a joint threat trade between my board of directors seat at Walmart and Yahoo! What we want to be focused on today is the core of Yahoo! On the Walmart matters our Board do not speak publicly about the company and you will need to direct you to [Jeff Gearhart], but I can’t put in touch with Jeff.

Unidentified Shareholder

Thank you.

Unidentified Shareholder

Thank you, Marissa. Good morning all. I'm [Carton Smith]. I'm here representing Service Employees International General Fund, which owns approximately 500 shares of Yahoo! stock. I am also a 17-year associate at Walmart. I am a husband, a father of three, grandfather of four. Like my colleagues who spoke before, I've joined with my colleagues to speak about my concerns about paying our scheduling and [audio gap] each is not just an honored principle in this country, it is also in value in which well Yahoo! itself has championed as an integral part of it's business. That's why it's surprising that Yahoo! which used to be associated with a company like Walmart and that you Miss Mayer would refuse to even hear what we have to say.

After we have tried for over a year to get you to respond, what would you do if I [Carton Smith] was your father or [Norma Dabbins] was your mother or [Yvette Brown] was your sister or [Giovanni Gomez] was your brother. In closing, Ms. Mayer, what are you going to do?

Marissa Mayer

Sir, again there is a time in place for all types of business. The business here this morning that we're here to conduct is around Yahoo!, separately there's the Walmart piece and again I have two Directors in the General Counsel of Walmart, [Jack Earheart] and I am happy to put you in touch with him.

Unidentified Shareholder

Thank you very much for your response.

Unidentified Company Representative

Sir?

Unidentified Shareholder

[Edward Brauntech] Individual shareholder. I've had two themes

Unidentified Company Representative

Hang on one second okay go ahead, thank you.

Unidentified Shareholder

Thank you. [Edward Brauntech] individual shareholder. Have two themes.

Unidentified Company Representative

Yes, okay. Sir, I'm sorry we missed your name the mic wasn't --

Unidentified Shareholder

Okay, Edward [Edward Brauntech] individual shareholder. And first of all congratulations on your selection Ms. CEO and your new baby. I have two questions or two things, the first one is, what is the worldwide amount of money spent on advertising and what percent have you monetized?

And the second one is regarding the Tumblr acquisition, just in general, Warren Buffett has indicated that the key skill that a CEO needs is capital allocation and as follow on to that he also indicates that he has three guidelines, primary guidelines for any acquisition.

The first one is the company must have a durable competitive advantage. The second one is the company must have a moat or it must have a barrier entry, and the third one is at the company basically cannot be worth more in the sum total of all future earnings discounted to present value. In light of the layoffs and some of the other changes can you talk about whether these are the acquisitions that you've done and plan in the future are going to follow Buffett's guidelines?

Marissa Mayer

Ken do you like take the capital allocation, question?

Ken Goldman

Yeah. I would just add that as we've talk about we have been clearly returning cash to shareholders. We're also very thoughtful as to how much cash we think we need to keep on the balance sheet that does give us the ability to do things like Tumbler. So we will continue to balance, returning cash to shareholders, we have been doing through buybacks and again any future buybacks are subject to Board and Management approval. So we continue do that relative to some of things you talked about, frankly it's all about growth, if you create growth and then from that earnings and free cash flow that is exactly consistent with the thought you enumerated relative to just kind of cash flow, so we're very, very focused on EBITDA which is the earnings before interest and tax and depreciation which is late cash flow and we've added as you know, if you look at that proxy we've added both EBITDA and free cash flow as core matrix that how we incentive during this company.

Marissa Mayer

And to go back to your question on the size of the advertising market and worldwide advertising market, the global advertising market depending on what you measure and you include to be measure in the 100 of billions or low trillions of dollars. The online portion of that is small but growing quickly and when you break our particular segments for example display advertising, external measurements and with estimate that Yahoo! has approximately 10% of that display advertising market.

Unidentified Shareholder

Thank you, sir. My name is Barbara Collins and I am here today representing Bricklayers International Pension Fund which owns about 6000 shares at Yahoo! stock. I have worked at Walmart Placerville, California for the last eight years and I still can't get scheduled for enough hours to make ends meet. Earlier this year, I wrote an (inaudible) for the women's media center. At red and impart three months after joining the Walmart Board of Directors in April 2012, and on the day that she was made Yahoo's new CEO Marissa Mayer, announced that she was expecting her first child. I was proud to that women had finally shouted, excuse me, that had for so long been unbreakable glass seal.

More importantly, I was heartened to think that I would finally have an advocate in Walmart's Board that would fight for workers like me who have children to provide for. Unfortunately, Ms. Mayer, my early feelings of hope that you have not been realized. And over the last year you have repeatedly ignored our requests to hear our concerns.

Now Wal-Mart has firing workers who stand up for right to free speech. Just this weekend, two women from my store, a mother and daughter were fired, because they were speaking out.

Yesterday, about 30 workers from Walmart came to Yahoo! headquarters again to try to meet with you. Unfortunately, apparently too busy to meet with us. Yahoo! even decided to [arrest] five of us. Miss Mayer many women throughout Silicon Valley and the world look up to you. and you're -- you've brought your personal history, skills and story to Yahoo! and the company has benefited as a result.

Now we are asking that you also be a leader at Walmart.

Marissa Mayer

Thank you for your thoughts. Again there is a time in place for our business, this morning's business about Yahoo! which is separate from Walmart.

Ron Bell

Thank you.

Unidentified Speaker

My name is Daniel. I am a shareholder and I want to speak to daily habit of Yahoo! Finance which you didn’t mention. I was wondering what's going to happen with that. I think the one area that it can improve and it’s for act, the people who are active in the market, it can be more for them and I would like to know what's onboard for that. Second thing is with Yahoo! Finance -- sorry Yahoo! Sports, I want to make a point, in the baseball box scores, you don’t show the attendance of the games and I look at that, especially the games that I go to and so I go to another site, almost any other sites shows you attendance and on ESPN, they even show the percentage of the capacity. So that’s a small thing that could be fixed. I wrote an email asking why it wasn’t there, I got no response.

Marissa Mayer

Thank you for the product idea. I'll call Adam in just a moment in terms of Finance and Sports and some of the updates. I really appreciate. We love hearing feature suggestions from our users and so I like the idea of attendance piece. We will look at where we can get the feed information like that and get them incorporate into the product. It's a good idea. As an oversight I apologize that I personally didn’t get your email, but that said we're excited about all new feature ideas and that’s a great one.

In terms of the Yahoo! Finance application both on PC as well as on mobile, we do have some updates planned. We don’t like to talk about our products until we have them launch at least for our users. We can’t give you too much of a preview, but Adam can probably speak to it to somewhat.

Adam Cahan

So part of what you have spoken about is the user experience that we bring for all of these different places, things like Finance and Sports. For Sports in particular, you saw we just did a pretty significant re-launch of a lot of the product suite. So covering things like tablet, phone, obviously the desktop as well and then similar process we're having with Finance. So Marissa has us focused on a lot of these properties going through each one of them making sure that they are refreshed, modernized, performing, available on all the platforms that our users are doing. So your advice about box score tennis is actually a great one and we will certainly look at it. Thank you.

Unidentified Speaker

I do want to say some parts of the Finance side look like they haven’t changed since day one.

Marissa Mayer

They probably haven’t and we’re working on that.

Unidentified Speaker

I am [Dan Halparn] shareholder. I just want to say that it’s my third shareholder meeting, my third CEO that I have seen on stage and I must say that thus by far is the most interactive and fun for the shareholders that I have been to. Past couple of years, the event here is kind of like a necessary evil, kind of like get in, get out, we did our part. But I’ve got to say that I couldn’t have imagine last year after the last year’s shareholders meeting that only days after the meeting that they would have plucked you from Google, and I couldn’t say I was more than pleased and excited and being born and bred in the great state of Wisconsin as yourself, I knew that we were in good hands.

So that being said, I really didn’t come here intending to make as question, but one very important question I do have is, in a little more than two months from now, opening game of the National Football League, the local team 49ers that we’re playing the great 13-time World Champion Green Bay Packers. Now very important question, will you be down in the Green and Gold come September?

Marissa Mayer

The great dilemmas of our time, but Go Packers, I love the 49ers too, but it comes head to head, Go Packers.

Unidentified Speaker

I am pleased you’re stating that Yahoo! is getting involved and you’re stating that’s great news, I think we’re great track and it's fantastic, I am excited to be a Yahoo! shareholder.

Marissa Mayer

It's awkward for me, because I am a big 49ers fan. Obviously they are great partners of ours, but there is one team above them in my book.

Unidentified Speaker

Right.

Marissa Mayer

But I really appreciate the feedback (inaudible) and we will work to make it better each year, we will be able to design the annual meeting as some of the design of our products is something that we want to make a great experience for those who attend.

Unidentified Speaker

Kudos to your corporate event planners and creative team for making this spirit and here is a lot more funs is here and do you have any more of those t-shirts?

Unidentified Speaker

This is my personal opinion. First is [George Polish] I have 2000 shares of Yahoo! and I am Greek and I am dirty old man and you look attractive, Marissa, now let's go to the next topic. You all say that we were showing money, I own Yahoo! five years, and I got diamond dividends, are you planning to pay dividend and are we candidates for takeover from Google or from one of the big companies or you can't comment on that?

Ken Goldman

It is actually hard for me to comment on the dividend that is actually a province of the board and so I am sure they and we take it under thought both in terms of look at that vis-à-vis stock buybacks and proper amount of cash, keeping the balance sheet but I certainly cannot discuss that today.

Unidentified Speaker

Yeah, but that buyback you are talking about, it affects raising the stock but actually you are giving us money back that should belong to us instead of paying big things. And my last comment is, had only grew few Marissa and the deal you did and produce a lot of bad press that you make the men and women workers here that were working out of the hostess taking care of their kids and doing their job and making them come back in, that is not a good idea.

And the other stock I own Google -- not Google, well it’s a dying company anyway, it’s out of Chicago, where you order stuff online a discounter, they follow your tricks of making people come back in. So, are you going to keep it that way or are you going to put it back to the old way it was because I think that's bringing bad and the must be to the employees that are here you say it's all love enjoy here, but I'm sure they are not happy that they are back here.

Marissa Mayer

So we do think that our views on work from home at this stage of Yahoo! and for this moment for our company, not a wide industry narrative for our company at this time, it's right to have people in the office because elsewhere we find collaboration. So things like the Weather application don't happen basically when you start to pull things like weather, needs Flickr photos, that only happens when employees bump into each other in the context of the office and that's how we got these kinds of great collaborations. People are more -- it is true I'll get into, I think people are more productive in isolation, but they are more collaborative and more inventive in group settings. And so that's most important for us right now. So I’d say that we're always with that way but that’s what's happening today.

Unidentified Analyst

Thank you, sir.

Unidentified Company Representative

And this would be our last question.

Unidentified Analyst

Well, thank you. I have been a shareholder. My name is [Bob Duggan]. I'm a personal shareholder, I own 765,000 shares. And for 10.5 months it's been an extraordinary return, so I want to thank Marissa, her team and the Board for handling one of the big challenges in any turnaround which is overcome inertia. And in that respect I’d think next year, as boy wonder who took the picture with balloon, nine balloons and this young fellow himself overcoming gravitational pull. We could balance that and have boy wonder take a picture of grow under which should be Marissa on the left hand side and team under on the background and well done keep up the good work.

Ron Bell

Marissa, any last words?

Marissa Mayer

No, I just want to say thank you all very much for coming this morning and thank you for your investment in Yahoo! and your belief in Yahoo! We will talk to you proud.

Ron Bell

All right, thank you so much guys. We have the new apps outside. You can try if you haven't tried them before, but thank you so much for coming out. We really appreciate it. Have a great day.

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