Yahoo! Expands Board Amid Anticipated Proxy Fight From Starboard

Activist Starboard Value looks ready to stage a proxy fight at Yahoo!, which has added new members to its board and appointed a pair of independent directors.

Author:: Sarah Pringle
Publish date:: Mar 11, 2016 1:34 PM EST

In the wake of an expected proxy fight to be launched by activist Starboard Value LP, Yahoo! Inc. (YHOO) has added new members to its board and appointed a pair of independent directors. The embattled Internet portal and technology company expanded its board to nine from seven seats and appointed former Morgan Stanley managing director Catherine Friedman and Eric Brandt, ex-CFO of semiconductor company Broadcom Corp. before it was acquired by Avago Technologies Ltd. (AVGO) in a $37 billion deal. The move comes after Smith in January stepped up a year-long insurgency at Yahoo! and threatened a change-of-control proxy fight if it didn't replace its management - including Yahoo! CEO Marissa Mayer - and quickly explore a sale of its core business. The expansion of board also comes as the deadline to nominate dissident director candidates to Yahoo!'s board in time for its 2016 annual meeting is roughly two weeks away and currently set for March 26.