On Friday, Yahoo Inc publicly launched the sale of its fundamental business, this move is taken as a positive step for the investors frustrated, however not sufficient to keep an advanced hedge fund from hunting a proxy combat against the struggling Internet Company.
Shares of Yahoo Inc., soared after the announcement, its board of directors has designed a committee of autonomous directors to explore strategic alternatives, and that it has hired investment banks and a law firm to run the process.
The inauguration of the auction process, a move activist hedge fund Starboard Value and other shareholders have forcing since late last year, marked the company was moving one more step closer to selling its entire business, which comprises search, news, and mail sites, instead of spin it off as earlier intended.
The turn follows not less than three years of effort by Marissa Maye, CEO of the company to turn around Yahoo by concentrating on mobile apps and trying to enhance advertising revenue. The company had accredited through its earnings last month that it was open to discovering options for the core business of the company.
People having knowledge with the matter said, even though the launch, Starboard’s founder Jeffrey Smith is not supporting down, and will continue his hunt of appointing a group of directors for the board of Yahoo.
On January 6th in a letter to the board, Smith said that, that if the board is not willing to accept the need for substantial change, then an election match may very well be required so that shareholders can substitute a majority of the Board with directors who will represent their best interests.
People having knowledge with the matter said that, although the board is representing that it’s now agreed to accept that requirement, Smith, Starboard’s founder is still going to propose a list of directors to confirm that the sales procedure is properly handled.
Investor Eric Jackson, of SpringOwl Asset Management, said that, board of Yahoo Inc., is anxious about the risk of losing a potential proxy contest.
