Activist fund seeks to replace Yahoo board

An activist hedge fund Thursday launched a bid to replace the entire Yahoo board of directors, saying the struggling Internet firm's management team has "failed to deliver results."

In an open letter to Yahoo shareholders, Starboard Value LP said it would nominate nine "highly qualified" directors to the company's board, following a threat made last year to do so if it was unsatisfied with the pace of change.

Replacing the board could pave the way for a sale or merger of Yahoo, whose troubles have deepened despite a restructuring plan led by chief executive Marissa Mayer.

"We believe that Yahoo is deeply undervalued and opportunities exist within the control of management and the board of directors to unlock significant value for the benefit of all shareholders," Starboard said.