There have been a report that Activist investor Starboard Value LP is trying to replace all existing Yahoo! director and placing in nine new ones in their place. According to Engadget, Starboard owns little percentage of Yahoo but the firm is afraid of losing it’s investment of the current board at the company continues as it could get ruined totally. In recent times, Yahoo Search and its Ads services have dropped low beside the likes of Google and Facebook and there was an estimate that the company is facing it’s largest drop in sales in six years which is nearing 14%. There have however been buying bids from bigger companies as argued by Starboard. Companies such as Time Inc. and Verizon have shown interest. Starboard clearly thinks a sale would most likely make sense.
Yahoo already ceded to the investment firm (and others) when it reversed a plan to spin off its valuable stock in Alibaba, and it wouldn’t be the first time a board change has happened in response to investor pressure
While there was a time in the past while the company was booming more, purchasing companies such as Tumblr and other services were credible to the Mayer. But as things would go odd, shutting down its Digital Magazines and Games vertical were also loss in the market The move to replace the current directors would still be a few months out, but Starboards track record includes taking out the entire board at Olive Garden’s parent company, so the threat is very real. Source: WSJ, Engadget
