This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Yahoo!: 99 Problems But the Board's The Big One

NEW YORK (TheStreet) - Hopes were high for a Yahoo! (YHOO) turnaround when Scott Thompson became CEO and Roy Bostock announced he would no longer be Chairman of the Board. Those hopes, however, are dimming as a proxy battle looms on the horizon.

Yahoo! appointed three members to its board on Sunday, just days after largest shareholder Third Point, run by Daniel Loeb, attempted to clinch four seats on the company's board.

In addition to himself, Loeb wanted to add Harry Wilson, Michael Wolf and Jeff Zucker, formerly of NBC Universal, to the board. Yahoo! said 'thanks, but no thanks.'

Inevitably, Loeb isn't happy about Yahoo!'s decision, and now a proxy battle's brewing. This hardly spells good news for a Yahoo! turnaround, according to Sanford Bernstein analyst Carlos Kirjner.

"The potential for a proxy battle with activist investors led by Third Point seems to have increased over the last several weeks," he wrote, in a recent note, citing a proxy battle as one of Yahoo!'s major problems. "The risk is that such confrontation would consume important time from the senior management team and lead to bad strategic decisions or poor execution," Kirjner wrote.

Third Point also made this point in its press release on Sunday. "Sadly for shareholders - who will once more bear the costs - the consequence of the Board's refusal to accept Third Point's shareholder-friendly proposals will be a time-consuming and distracting proxy contest that the Company can ill-afford," it said. Loeb, who has never been known to mince words, referred to the board as "dysfunctional."

When Scott Thompson, formerly of PayPal, was announced as CEO, and the embattled Bostock decided he would not seek re-election, there was optimism that the company would get back on track.

Stock quotes in this article: YHOO, EBAY, IACI, DISCA 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,455.45 -46.20 -0.28%
S&P 500 1,874.91 -0.48 -0.03%
NASDAQ 4,130.8520 +3.8850 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs