Yahoo shareholder blasts company for board snub

Mar 28, 2012 By MICHAEL LIEDTKE , AP Technology Writer

(AP) -- A major Yahoo shareholder passed over for a seat on the troubled Internet company's board is blasting the decision as "illogical."

Hedge fund manager Daniel Loeb described the snub as a glaring example of shoddy in a Wednesday letter to Yahoo CEO .

Loeb contends he would have been a better representative for Yahoo Inc. shareholders because he controls a 5.8 percent stake in the company through his fund, Third Point LLC. Loeb has spent about $1 billion buying Yahoo shares since September.

Yahoo said on Sunday that it appointed three other directors who haven't been investing in the company.

After that move, Thompson apparently further aggravated Loeb with his explanation for the decision. In his letter, Loeb says Thompson told him that he was rejected as a director because his "experience would not be additive."

Thompson also explained to Loeb that Third Point's large holdings in the company might give him an incentive to recommend actions focused on short-term gains instead of a strategy that would be produce better long-term returns for Yahoo and its shareholders, according to Loeb's letter.

Yahoo, which is based in Sunnyvale, Calif., had no immediate response to Loeb's letter.

Loeb defended his record as an who has held stock in other companies for several years. He also pointed out that Third Point's substantial stake in Yahoo gave him a greater incentive to do what's right for shareholders than the company's other directors.

"Only in an illogical Alice-in-Wonderland world would a shareholder be deemed to be conflicted from representing the interests of other shareholders because he is, well, a too," Loeb wrote.

Loeb is still seeking to get his way by leading a rebellion against Yahoo. He has nominated himself and three other candidates to Yahoo's board and launched a campaign that is likely to include brickbats similar to Wednesday's letter for several months. Some analyst are already worried the theatrics will distract Thompson as he tries to overhaul Yahoo's operations and snap the company out of a financial funk that has depressed its stock for years.

Unless a truce is reached, the dispute over the composition of Yahoo's board will culminate at the company's annual meeting. Yahoo typically holds the meeting in June, although the company delayed it until August the last time it faced a challenge to its board.

Yahoo already has started to shake things up since hiring Thompson in January by naming six new directors, including the CEO. co-founder Jerry Yang resigned from the board in January and four other longtime directors, including Chairman Roy Bostock, will step down at the annual meeting.

shares dipped 11 cents to $15.32 in late afternoon trading Wednesday.

Explore further: Why the Sony hack isn't big news in Japan

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Yahoo board battle may begin within the next week

Mar 15, 2012

(AP) -- A potentially nasty battle to reshape Yahoo's board of directors will begin within the next week unless the troubled Internet company submits to the demands of a major shareholder.

Yahoo shareholder pushes for its board nominees

Mar 21, 2012

(AP) -- One of Yahoo's major investors is urging shareholders to vote its four nominees on to the Internet company's board, launching a potentially nasty fight to transform the Internet company's board.

Major Yahoo shareholder launches board challenge

Mar 21, 2012

(AP) -- A major Yahoo shareholder has launched a campaign to win four seats on the Internet company's board, setting the stage for a nasty battle that could drag on for months.

Recommended for you

Why the Sony hack isn't big news in Japan

1 hour ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

6 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

7 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

21 hours ago

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

Dec 19, 2014

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.