The rebellions of Yahoo shareholders have become like the US presidential election: happen every four years. The activist investor Starboard Value and on Thursday launched a mutiny early with a letter announcing his intention to overthrow the CEO of Yahoo, Marissa Mayer, and the rest of the members of the board of the company.
fILE – in this file photo January 7, 2014, the president and CEO of Yahoo, Marissa Mayer, speaking at the International Exhibition Consumer Electronics in Las Vegas. The active investor Starboard Value anticipated launched a mutiny on Thursday, March 24, 2016 in a letter announcing his intention to overthrow Mayer and the other members of the board of the company.
Photo: AP Photo / Julie Jacobson, File / AP in Spanish
This marked the first salvo in a battle for control of Yahoo Inc., which could continue until summer.
This is the third coup attempt in Yahoo since 2008, all directed by different shareholders had enough failures to different management teams for the company to give up profits.
The two previous surveys in 2008 and 2012 culminated when Yahoo gave dissenting shareholders seats on the board. The unrest also contributed to the outputs of two previous CEOs of the company co-founder Jerry Yang and Scott Thompson.
Now the work of Mayer is in danger, after prolonged drop in revenue Yahoo deepened during his four years as CEO.
“We have been extremely disappointed with the dismal financial performance of Yahoo, mismanagement, atrocious compensation, hiring practices and general lack of accountability,” he wrote on Thursday in a letter Starboard CEO Jeffrey Smith.
As part of a process known as proxy fight (power struggle), Starboard nominated nine alternative candidates to oppose Mayer and other current directors of Yahoo during the annual meeting the company in June.
The list of proposed includes Smith, who has publicly attacked Yahoo during the past 18 months in an attempt to pressure Mayer to take drastic measures that he believes will increase the price of the shares of the company.
Starboard, which owns 1.7% of Yahoo shares, devised a power struggle in 2014 that ousted the entire board of Darden Restaurants Inc., which owns the Olive Garden chain.
In a statement, Yahoo said it would review the nominees of Starboard and would respond “in due time”.
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