Activist investor Starboard Value launched a proxy fight in a bid to oust Yahoo's entire board. Fred Katayama reports.
Get set for a proxy fight. Activist hedge fund Starboard Value wants to oust Yahoo's entire board. Starboard said it will nominate nine directors including its CEO, Jeffrey Smith. It said in a letter, "We have been extremely disappointed with Yahoo's dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the Board." Starboard's move comes as Yahoo prepares to auction off its core Internet business that includes its email, finance and sports sites. Among the expected bidders: telecom giant Verizon Communications and magazine publisher Time Inc. Yahoo's shares fell in early trading. After more than three years in the corner office, Marissa Mayer hasn't made much progress in turning around the beleaguered company. Yahoo has been unable to keep up with rivals Google and Facebook in the battle for online advertisers. Shareholders have until Saturday to submit nominations for board members. The annual meeting is set for June.