Dec 10 (Reuters) - SQN Investors LP, one of Yelp Inc’s top five shareholders, blamed the consumer review service company’s board for its underperformance on Monday and called for new independent directors to be appointed.
SQN, which now owns more than a 4 percent stake in Yelp according to a letter it released, said that the board has failed to hold itself and the management accountable for Yelp’s “repeated strategic and operational missteps.”
“We are deeply concerned by the board’s lack of urgency in addressing many of the issues facing Yelp,” the hedge fund said.
The hedge fund said a “refreshed” board will determine if Yelp should consider selling itself after “a consistent pattern of operational blunders, poor forecasting and sharp guidance revisions.”
In a response to SQN’s letter, Yelp said it is looking forward to a dialogue with SQN and reviewing their letter. (Reporting by Sonam Rai in Bengaluru; Editing by Derek Francis)