Yahoo Inc.'s stock rose 0.8% in premarket trade Thursday, bucking the sharp weakness seen in the broader market, after activist investor Starboard Value LP confirmed that it was nominating nine people to the Internet company's board of directors. Starboard said it owns about 1.7% of Yahoo's outstanding shares. In a letter to Yahoo shareholders, Starboard said it believes Yahoo is "deeply undervalued," and opportunities exist to unlock significant value for shareholders. "Unfortunately, as we have outlined in previous letters, we have been extremely disappointed with Yahoo's dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the Board," Starboard wrote. "We believe the Board clearly lacks the leadership, objectivity, and perspective needed to make decisions that are in the best interests of shareholders." The Wall Street Journal had reported late Wednesday that Starboard was looking to replace Yahoo's entire board. The stock has tumbled 22% over the past 12 months, while the S&P 500 has slipped 2.6%.
Copyright © 2016 MarketWatch, Inc.
Continue Reading Below