Jim Cramer Suggests Yahoo No Longer In 'Disarray' After Reaching Agreement With Starboard
Yahoo! Inc. (NASDAQ: YHOO) announced on Wednesday it has reached an agreement with activist investor and major shareholder Starboard Value.
As part of the agreement, Yahoo will add four new independent members to its Board of Directors, including Jeff Smith, Starboard's CEO and Chief Investment Officer. The company also named Tor Braham, Eddy Hartenstein and Richard Hill to the board.
Braham served as Deutsche Bank Securities' Managing Director and Global Head of Technology Mergers and Acquisitions from 2004 to 2012. Hartenstein served Chairman and CEO of DIRECTV while Hill has similar experience as he served as Chairman of Tessera Technologies.
In return, Starboard has withdrawn its director nominees for Yahoo's Board of Directors.
CNBC's Jim Cramer offered his quick take on the development and suggested investors buy shares of Yahoo following the agreement.
According to Cramer, Yahoo's business may no longer be in "disarray" as the new slate of directors are "very good."
"I like this," Cramer continued. "I like it because this is adults coming in and saying listen - if the auction fails [to sell Yahoo's internet assets], we will turn it around."
Shares of Yahoo were trading lower by more than 1 percent late Wednesday morning.
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