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Yahoo Reaches Agreement With Starboard, Averting Proxy War

  • Settlement also could facilitate a sale of core business
  • Starboard has had 10 other activist campaings since 2014
Updated on

Yahoo! Inc. scored a narrow victory against activist investor Starboard Value LP, averting a proxy war that threatened its board and Chief Executive Officer Marissa Mayer, and letting management retain some sway in deciding the company’s fate.

Starboard will name Tor Braham, Eddy Hartenstein, Richard Hill, and Jeffrey Smith, Starboard’s CEO, to the board effective immediately, Yahoo said in a statement Wednesday. Starboard has withdrawn a previous slate of nine director nominees, and Yahoo will lose two existing board members, leaving the board with 11 members, four of whom are aligned with Starboard.