Report: Yahoo May 'Cede' Board Seats To Starboard Value

Bloomberg reported earlier in the month that Starboard Value, an activist hedge fund and Yahoo! Inc. (NASDAQ: YHOO) shareholder is "taking initial steps" in declaring a proxy fight with the company.

According to a new report from the New York Times, a proxy battle may prove to be unnecessary as Yahoo could offer at least two board seats to the activist fund. However, the publication, citing "insiders," are "skeptical" if Yahoo's olive-branch would be accepted as the activist investor is eyeing a majority control of the board.

Related Link: Activist Investor Taking 'Initial Steps' Towards Proxy Fight With Yahoo

"Starboard will probably want at least four seats if it doesn't try to replace the board entirely," one source told The Post while another source added, "Starboard feels like they're coming from a position of strength."

Meanwhile, Yahoo CEO Marissa Mayer was recently visiting Wall Street firms to discuss a potential sale of the company's internet assets. The New York Post quoted another source who said that the executive now "realizes she faces a skeptical shareholder base and selling the company is the right thing to do."

Finally, the New York Post quoted a source "close to the hedge fund" who said that it "does not trust this board to be able to do the right."

Shares of Yahoo were trading higher by 0.26 percent at $31.45 ahead of Monday's opening bell.