Starboard Value, the activist investor that has been pressuring Yahoo executives to make big changes in order to save the company, is reportedly planning a proxy war to dump Yahoo’s entire board, The Wall Street Journal reports.
According to a letter cited by The Journal, Starboard is getting ready to announce that it will “nominate nine directors to Yahoo’s board,” a signal that the hedge fund is unhappy with the progress of Yahoo’s turnaround.
The letter from Starboard, according to WSJ, says management has “continually failed to live up to their own promises” and “shouldn’t be trusted” to make decisions about whether Yahoo stays the course and remains an independent company.
Yahoo is currently exploring a possible sale.
Back in January, Starboard apparently urged Yahoo to pick up the pace with getting the business back on track. At the time, Starboard Managing Member Jeffrey Smith said, “It appears that investors have lost all confidence in (Yahoo’s) management and the Board.” In the letter, Starboard said the past year had been “extremely frustrating” and called for “significant changes” at the troubled digital giant.
At the time, a Yahoo spokesperson told Business Insider, “Yahoo is in the midst of a multiyear transformation … We will share additional plans for a more focused Yahoo on or before our Q4 earnings call.”
If Starboard makes good on its threat to try and shake up Yahoo’s management ranks, Yahoo would be the largest company to have its board completely upended by an activist, The Journal noted.
Despite all the drama surrounding Yahoo of late, Business Insider’s Eugene Kim says Wall Street is surprisingly bullish on Yahoo’s stock.