Yahoo! Inc.(NASDAQ:YHOO) CEO Marissa Mayer might have triggered a proxy fight by appointing two new board members without consulting activist hedge fund Starboard Value. Catherine J. Friedman and Eric K. Brandt are the new members to a board that is facing mounting pressure. They replace Max Levchin and tech entrepreneur Charles Schwab who stepped down.
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Starboard Vs Yahoo Board
Starboard may not necessarily be opposed to the two men but rather the manner in which the appointments were made. Failure to consult the hedge fund could be an indication that Yahoo is standing its ground against the investor. The hedge fund has been critical of the board in the recent past, and more so on Mayer’s new strategy.
Even as the showdown continues to dominate headlines, Mayer has stood her ground reiterating they have to run the company in the best way they can. How long Mayer will hold on is still a point of contention as Starboard is set to propose new directors.
Last month Yahoo reiterated they are open to offers for the company’s core assets. This marked a shift in position from the executive’s stance in December where he thwarted calls for a possible sale. A deal for the internet business would mark the end for Yahoo as an independent company. There is no guarantee that a deal will occur soon.
Mayer’s Big Plan
If past events are anything to go by then investors may have to wait a little bit longer before Mayer offloads any core business. Amidst the current standoff, Mayer has once again reaffirmed her commitment to her turnaround with a big announcement.
Yahoo says it will livestream some National Hockey League games as it continues to bolster its presence online. Yahoo Sports will be livestreaming its first game on Friday pitting the Philadelphia Flyer against the Tampa Bay Lightning. The embattled search giant will also continue to stream Major League baseball games.
Yahoo has also added a new site dedicated to e-sports as part of the new turnaround plan. It is eyeing advertising revenue from the new efforts even as it continues to struggle amidst stiff competition from its rivals.