Yahoo fight looms after board shakeup

2012-03-26 09:24
San Francisco - Yahoo! announced the appointment of three independent board members as the struggling firm moved to shake up its team and fend off a challenge from an activist hedge fund.

But the hedge fund seeking to wrest control of the firm said it was disappointed with the move, and would press its case to shareholders.

Yahoo! said the new board members were John Hayes, executive vice president and chief marketing officer of American Express; Peter Liguori, former chief operating officer of Discovery Communications and former chair and president of entertainment of Fox Broadcasting Network; and Thomas McInerney, the outgoing chief financial officer of IAC/InterActiveCorp.

Yahoo said the new board members "bring a powerful mix of exactly the right ingredients to fuel Yahoo!'s forward momentum".

Yahoo! named Scott Thompson as its new chief executive in January and promised urgent action to turn the company around after a year of falling income and profits.

Proposals

Thompson, named Yahoo! CEO only on January 4, said the internet giant needed to move quickly to exploit its huge bank of user data to regain market share, especially in display ads where it has lost ground.

But the nominating committee rejected a push for a slate of nominees from hedge fund Third Point, which has taken a large stake in Yahoo!, saying it chose the "best qualified" candidates.

A Yahoo! statement said the company had proposed accepting one of the Third Point candidates along with another candidate mutually acceptable to the board and the hedge fund.

But the statement said Third Point founder and chief executive Daniel Loeb "rejected this proposal and declined to end Third Point's solicitation with respect to its own four candidates unless he personally was appointed to the board".

The Yahoo! board said it "remains open to hearing Third Point's ideas and to working constructively with Third Point, but believes that appointing Mr Loeb to the board is not in the best interest of the company and its shareholders".

But Third Point said it was disappointed and that the Yahoo! board "has shown yet again that they are unable to execute deals that are in the company's best interests".

"Since we launched our campaign for a better Yahoo!, our goal has been clear: To fix a dysfunctional board by adding new directors who are truly independent and squarely aligned with shareholders to increase Yahoo!'s value," a Third Point statement said.

"Since the board has left us with no choice but to take our case directly to our fellow shareholders, Third Point intends to move forward with a proxy contest. Yahoo!'s shareholders deserve a voice and a choice. We intend to provide them with one at this year's annual meeting."

After Thompson was recruited, Yahoo! co-founder and former chief executive Jerry Yang resigned from the board of directors. A few weeks later the chair and three other directors said they would step down, opening the way for Thompson's agenda.
Read more on:    yahoo  |  internet
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

Joburg hot spots for cocktails, craft beer, tapas and wine!

It’s the season to be jolly – so we’ve rounded up some new Joburg hot spots!

 
 

I love summer.24

The craziest deaths of 2014
How to make this a sensual, sexy summer!
This is what South Africans Googled in 2014!
This hilarious song is your new holiday anthem

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

2DAYS ONLY – 30% off Appliances

Coffee makers, blenders, fans, juicers and more. T&Cs apply. Shop now!

2 DAYS ONLY – 40% off books

Get 40% off when you buy 2 books. For two days only! T&Cs apply. Buy now!

Up to 50% off on outdoor gear

Save on chairs, blankets, cooler bags, umbrellas and more. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

You may be emotionally defensive or reserved today. You need to step up today as there may be extra responsibilities to deal with....read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.