Getting passed over for a new job can be frustrating, but very few people have perhaps complained as publicly as one major Yahoo shareholder, the Associated Press (News - Alert) reports.
Daniel Loeb, a hedge fund manager who controls 5.8 percent of the company, through his fund, Third Point LLC blasted the move in a letter to Yahoo CEO Scott Thompson.
“Only in an illogical Alice-in-Wonderland world would a shareholder be deemed to be conflicted from representing the interests of other shareholders because he is, well, a shareholder too,” he wrote in the letter.
Loeb said in his letter that Thompson turned him down because his experience was irrelevant. Yahoo has already named three new board members who aren’t investors in the company. Appointing Loeb to the board might even be detrimental, in Thompson’s view, because his investment in the company might cause them to make decisions focused on short-term gain instead of long-term growth.
Loeb, however, said he believed his stake in Yahoo would be a better influence on him to do the right thing for the company than the company’s directors who are not shareholders.
Loeb is apparently conducting a “rebellion” against the beleaguered Web company. He has nominated three board members of his own and is planning to bring his concerns before the annual shareholders meeting, which Yahoo usually schedules in June, but when the company faced a challenge to its board previously, it delayed it until August.
Some analysts are concerned that Loeb’s antics might distract Thompson from steering the company into a sustainable future.
In January, Yahoo co-founder Jerry Yang (News - Alert) resigned from the board, along with four others. The company has also continously demanded that Facebook (News - Alert) license some of their patents or face litigiation, claiming the incredibly popular social networking site is infringing on Yahoo’s intellectual property.
Yahoo has been issued over 1,000 patents, while Facebook has been issued only 56.
Edited by Jamie Epstein