Yahoo shareholder Starboard Value LP announced Thursday it was aiming to replace the entirety of the Internet company's board of directors.

In an open letter to fellow shareholders, the hedge fund said it would nominate nine "highly qualified" directors to the board, following a threat made as early as last year to do so, should it be unsatisfied with the pace of change in the company.

Starboard Value LP argued the struggling firm's management team had "failed to deliver results."

"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," the hedge fund said.

Beyond its peak

Although Yahoo is still one of the best-known names on the Internet and is used by a billion people, it has lately fallen behind Google in Internet searches. On top of that, it has been losing ground in online advertising to industry leaders like Alphabet and Facebook.

Yahoo had reported a loss of $4.43 billion (3.97 billion euros) in the final quarter of last year, despite a slight increase in revenues in the same period year on year.

In February, CEO Marissa Mayer said the company was cutting 15 percent of its workforce and narrowing its focus as it explored "strategic alternatives."

Yahoo did not immediately respond to Starboard Value LP's initiative.

hg/jtm (AP, AFP)