The big news this week is a report that activist hedge fund Starboard Value is pushing to remove the entire board of directors at Yahoo! Inc. The Wall Street Journal first reported on a letter that indicates Starboard is preparing to nominate nine directors to the company's board of directors, as the hedge fund remains discontent with the turnaround effort under CEO Marissa Mayer.
This would be the largest company to ever have its full board of directors replaced by an activist investor.
Yahoo Inc. is weighing a sale of its core Internet business and will not sell its stake in Chinese e-commerce firm Alibaba Group Holding Ltd., CNBC reported, with an announcement coming as soon Wednesday.
Activist investor Starboard Value LP asked Yahoo Inc to drop plans to spin off its stake in Alibaba Group Holdings Ltd due to tax concerns, and instead urged the company to sell its core search and display advertising businesses.
Internet giant Yahoo! Inc. announced yesterday that the IRS will not grant the private letter ruling the company requested in regards to the proposed tax-free spin-off of its remaining stake in Alibaba Group Holding Ltd.