Activist Investor Buys Up Yahoo Stake; Slams Board

View Comments
Yahoo Website

A Yahoo web page (Nicholas Kamm/Getty Images)

SUNNYVALE (CBS/AP) — An activist investor has bought a 5.2 percent stake in troubled Web portal Yahoo Inc. and released a public letter Thursday calling for sweeping changes to the board.

The letter from Daniel Loeb, chief executive of investment adviser Third Point, comes after Yahoo’s board fired CEO Carol Bartz on Tuesday after 2 ½ years on the job.

Loeb said the board made a “serious misjudgment” in hiring Bartz in the first place and criticized it for taking so long to fire her given her “abysmal performance.”

He also said the board made a “gross error” in turning down Microsoft’s takeover bid in 2008 for $31 a share.

Yahoo shares jumped 39 cents, or 2.9 percent, to $14 midday Thursday after the letter was released.

 

 

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

 

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 56,722 other followers