Dan Loeb has criticized Yahoo’s board. And now the hedge-fund investor is
Dan Loeb has criticized Yahoo’s board. And now the hedge-fund investor is calling for Jerry Yang, a founder of the Internet company, to be deposed.
In a letter Loeb said he sent to Yahoo’s board, the investor says he’s worried about a “leveraged recap” transaction the company is pursuing. Such a transaction would give private-equity firms a possible shot at taking over control of Yahoo without buying a majority stake. Loeb also said he is worried about reports Yang is talking on his own to potential private-equity buyers of Yahoo.
“The Board and the Strategic Committee should not have permitted Mr. Yang to engage in these discussions, particularly given his ineptitude in dealing with the Microsoft negotiations to purchase the Company in 2008,” Loeb writes in his letter.
Loeb also wants two director posts on the Yahoo board — the seats now held by Yang and by Yahoo Chairman Roy Bostock. Loeb’s letter includes a veiled threat (ok, no so veiled) of a campaign to boot off Yahoo’s existing board members.
Change is always good, especially for a company that doesn’t seem to know what it’s doing!