• by Laurie Petersen , October 8, 2007

Yahoo's value will not be unleashed until it is broken up or sold, Sanford C. Bernstein & Co. analyst Jeffrey Lindsay said in a research report last week.

The combined value of Yahoo's display advertising, Internet search engine and subscriptions business amounts to $39 a share, the analyst said. Shares rose 73 cents to $27.88 at Friday's close.

"To stop the inevitable slide into irrelevance, the management team must consider more radical actions and strategies," Lindsay wrote. "Incremental changes to rebuild revenues simply won't cut it this time."

CEO Jerry Yang is wrapping up a 100-day review of the company. So far, it has resulted in a shakeup of the advertising organization and the acquisition of behavioral targeting ad company BlueLithium. That deal got a nod from the FTC last week.

Yahoo could be broken into ad and subscription businesses to reach his $39-a-share estimate, Lindsay wrote.