Yahoo Reaches Deal With Activist Investor Starboard, Adds Board Members

SUNNYVALE (CBS / AP) — Yahoo says it reached an agreement with activist investor Starboard Value to add four new members to its board, including the CEO of Starboard.

Starboard has been pushing the troubled Internet company to shake up its board.

As part of the agreement, Yahoo has withdrawn its nominees for the board and two current members will not stand for re-election at the company's annual meeting in June. After the June meeting, the board will have a total of 11 members.

The four new board members are Starboard CEO Jeffrey Smith, former CEO of media companies Tribune Co. and DirecTV Eddy Hartenstein, former Deutsche Bank executive Tor Braham and Richard Hill, chairman of technology company Tessera.

Shares of Yahoo Inc. fell about 1 percent to $36.74 in morning trading.