Activist investor Starboard Value wants to remove the entire board of Yahoo and nominate nine directors of its own, the Wall Street Journal reported, citing a letter. The investor said in the brief that it believes the current board and management have continually failed to live up to their own promises and should not be trusted with the decision on whether or not Yahoo should remain an independent company. A Yahoo spokesperson declined to comment on the Starboard proposal.
Yahoo’s board has already launched a sales process for its core business, with CEO Marissa Mayer looking to boost results through costs cuts and improved focus on key areas including search and content.
Starboard has warned that “turning around this business is extremely difficult” and, while it wants the board to remain open-minded, it believes there are several “interested and credible buyers” for the core business. The company’s bankers have been contacting potential suitors, including Verizon Communications, IAC/InterActiveCorp and Time, as well as private-equity firms TPG and KKR & Co, but the process is in the early stages.
