Yahoo Inc. said it reached an agreement with activist investor Starboard Value LP to add four members to its board, after the hedge fund launched a proxy fight last month that set the stage for a battle over the future of the web giant.
As part of the agreement, Starboard has withdrawn its slate of director nominees, effectively ending its proxy fight with the company. Under the terms of the deal, Starboard will add Jeffrey Smith, Starboard’s chief executive and chief investment officer, as well as Tor Braham, Eddy W. Hartenstein, and Richard Hill.
Starboard has said the board and management have continually failed to live up to their own promises, and shouldn’t be trusted with the decision on whether or not Yahoo should remain an independent company.
Under pressure from Starboard and other investors, the Sunnyvale, Calif., company previously reversed a plan to spin off its stake in Alibaba. In March, it added two new board members with deal-making experience.
Starboard’s board fight added pressure to Yahoo and Chief Executive Marissa Mayer as they attempt to turn around or sell the beleaguered company. Verizon was seen atop the pack of suitors who had placed bids on Yahoo, whose deadline for preliminary bids for the telecom giant passed last week.