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Just days after Carol Bartz left Yahoo one of the company’s largest shareholders Daniel Loeb is demanded that the company overhaul it’s board because the directors have made “serious misjudgments” which have “destroyed value” for shareholders.
Loeb is the CEO of hudge fund Third Point LLC which currently controls nearly 5 percent of Yahoo shares.
Writing to his own team Loeb noted that a:
“Reconstituted board with new directors who will bring fresh eyes, relevant industry expertise and increased investor alignment to the table is immediately necessary.”
In his letter he specifically called for the resignation of Charman Roy Bostock, the man responsible for removing Carol Bartz, along with directors Arthur Kern, Vyomesh Joshi and Susan James.
Third Point directors have been holding discussions of their own to find potential replacements for director roles at Yahoo.
In his letter Loeb says firing Bartz wasn’t enough:
“From the failed Microsoft sale negotiations, to a subsequent bungled and disappointing search deal with Microsoft, through a series of misguided CEO selections, and most recently the Alipay debacle, this board’s failures have destroyed value for all Yahoo stakeholders.”
In a nearly non-response Yahoo released the following statement:
“Accordingly, the Yahoo board welcomes a dialogue about the concerns that have been raised by the Third Point filing. The board is committed to acting in the best interests of shareholders.”
Directors at Yahoo say they plan to replace Bartz on their own.
Microsoft offered to purchase Yahoo in 2008 for $31 per share, those same shares are now worth $14.44 on the Nasdaq as of today’s end of trading.
Do you think Yahoo needs to be fully reorganized from the top down?
