Yahoo! Inc. (NASDAQ: YHOO) may be changing its stance on its cash plans after (or if) it sells its stake in Alibaba.  An SEC Filing after the close shows that newly appointed CEO Marissa Mayer may not be wanting to automatically disburse its cash.

The filing noted “Ms. Mayer is engaging in a review of the Company’s business strategy to enhance long term shareholder value. As part of that review, Ms. Mayer intends to review with the Board of Directors, among other things, the Company’s growth and acquisition strategy, the restructuring plan we began implementing in the second quarter of 2012, and the Company’s cash position and planned capital allocation strategy. This review process may lead to a reevaluation of, or changes to, our current plans, including our restructuring plan, our share repurchase program, and our previously announced plans for returning to shareholders substantially all of the after tax cash proceeds of the initial share repurchase under the Share Repurchase and Preference Share Sale Agreement we entered into on May 20, 2012 with Alibaba Group Holding Limited”

This is how a new CEO can manage to irk shareholders who are wanting some payback for their patience.  Yahoo! shares closed down about 1% at $16.01 against a 52-week range of $11.88 to $16.79.  The after-hours reaction has shares down over 4% at $15.26 so far.

In short, Mayer may keep the cash to bolster the books or she may use it for deals or other purposes.  Either way, this just challenged whether or not Yahoo! holders can expect any big one-time dividend payout.

JON C. OGG

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