A New Target at Yahoo

By JOANN S. LUBLIN And AMIR EFRATI

Much of the blame for Yahoo Inc.'s lack of revenue growth in recent years fell on Chief Executive Carol Bartz. Now, that investor angst has shifted to Yahoo Chairman Roy Bostock.

Since the Internet company fired Ms. Bartz last week after 32 months on the job, the 70-year-old Mr. Bostock—a veteran of deal making and boardroom politics who also is a longtime director at Morgan Stanley and Delta Air Lines Inc.—has faced a barrage of investor questions.

Among them: Why did Yahoo directors hire Ms. Bartz in the first place, despite her lack of experience in the consumer Internet industry and online advertising? And why did it take so long to fire her after the company showed no sign of revenue growth? Mr. Bostock, who became chairman in 2008, and other directors also still are haunted by their failure three years ago to sell Yahoo to Microsoft Corp. The software company had offered more than $45 billion to buy Yahoo—two and a half times the Internet company's current market value.

Following Ms. Bartz's ouster, hedge-fund manager Daniel Loeb on Thursday disclosed that his firm holds a 5.15% stake in Yahoo and demanded a board shake-up, including Mr. Bostock's resignation. Mr. Loeb threatened to try to oust Mr. Bostock and fellow directors at the company's annual meeting next year.

Some smaller investors also have expressed displeasure.

Through Mr. Bostock's spokesman, the board issued a prepared statement saying it "recognizes the critical challenges facing the company and appreciates constructive input from all shareholders." The statement said the board would discuss Mr. Loeb's concerns with hi