New Directors Added on Yahoo’s Board

Yahoo Inc

Yahoo Inc

Yahoo, the internet company, appointed three members to its board of directors, preparing for a proxy fight with one of its largest shareholders. John Hayes, chief marketing officer of American Express, Peter Liguori, former chief operating officer of Discovery Communications Inc., and Thomas McInerney, the outgoing chief financial officer of InterActiveCorp are Yahoo’s nominees to the board.

The statement came yesterday; nearly four days after Third Point LLC launched a promotion to win four seats on Yahoo’s board. Hedge fund Third Point, which owns a 5.8 percent stake in Yahoo, suggested names of four new directors for the board, which included fund manager Daniel Loeb, former NBC Universal CEO Jeff Zucker, former MTV Networks executive Michael Wolf and turnaround specialist Harry Wilson.

The announcement set the stage for a vicious proxy battle, which could literally drag on for months. And something to note about is that Wilson had been the only one on Third Point’s slate, which Yahoo’s board agreed to. Yahoo asked Third Point to come up with some other nominee, who might actually be more suitable than Third Point’s other candidates.

Third Point issued an announcement yesterday that it was disappointed with the appointments Yahoo had made for the board, and that Third Point intends to move forward with a substitute contest. Third Point has invested about $1 billion in Sunnyvale, Calif-based Yahoo and believes the Yahoo would do better if its representatives help new CEO Scott Thompson overhaul operations. Thompson joined the company from eBay Inc.’s PayPal.

Third Point stated last month that it would revolt unless the company accepted its lineup of candidates as directors. Daniel Loeb, Third Point CEO, gave Thompson a final chance to prevent a revolt by accepting the hedge fund’s candidates for the board.

The battle for substitute would likely add to the chaos surrounding Yahoo, as Thompson mulls a dramatic reorganization. 11-member board of Yahoo has already changed. Four directors, including Chairman, plan to step down at the company’s annual meeting this year. The company appointed two directors, Alfred Amoroso and Maynard Webb, to its board last month.

Roy Bostock said, “We have appointed a capable and dynamic CEO who is driving the business towards its next era of success. And we have reconstituted the Board of Directors with the right mix of experience and expertise.”

Unless a compromise is reached, the showdown between Yahoo and Third Point will be settled at the company’s annual meeting. This has been the second time in four years that Yahoo has faced a boardroom challenge from a disgruntled shareholder. Billionaire Carl Icahn sought to overthrow Yahoo’s board, in 2008, after the company balked at a chance to sell itself to Microsoft Corp. for $47.5 billion. Icahn wound up accepting a truce that gave him and two of his hand-picked choices seats on Yahoo’s board. Icahn and his allies are no longer on the board.

 

Dhwani Shah

Recent Posts

Elon Musk’s Starlink satellite internet set to cover the globe soon

Elon Musk’s Starlink satellite internet set to cover the globe soon

Starlink, the satellite internet unit of Elon Musk’s SpaceX, will most likely be able to provide global coverage by September, according to the company’s president Gwynne S
13 hours ago
At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

At the next Krispy Kreme IPO, the donut maker aims to raise nearly $4 billion

Krispy Kreme, the popular donut chain, aims raise roughly $4 billion as it makes one of the biggest IPO debuts at the NYSE.
14 hours ago
Panasonic hopes Blue Yonder acquisition will improve its software woes

Panasonic hopes Blue Yonder acquisition will improve its software woes

Most Japanese major companies, which at one time were leaders in consumer electronics, are struggling to find their feet in a world that has moved to digital software. Electronics
1 day ago
Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

Ikea and Rockefeller Foundations to raise $10 billion for renewable energy projects in poor countries

The Ikea and Rockefeller foundations are jointly launching a $10 billion fund to promote small-scale renewable power projects in developing nations. Both
3 days ago
EC initiates another probe into Google’s adtech practices

EC initiates another probe into Google’s adtech practices

EU antitrust regulators are planning a formal investigation into Google’s digital advertising practices by the end of this year. Google is already facing unprecedented regulatory
3 days ago
Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

Some Microsoft employees stayed at data centers during Pandemic to keep all systems going

The Covid-19 pandemic ravaging the world for more than a year has forced companies and organizations to find viable solutions to keep the business going. Most found a solution in w
3 days ago