Third Point Wins Yahoo! Board Seats, CEO's Exit

May 14 2012 | 2:12pm ET

Third Point has continued its string of activist successes against Yahoo! Inc., as the company has parted ways with its embattled CEO and given the hedge fund representation on its board.

CEO Scott Thompson resigned yesterday, almost a week after Third Point had demanded his head. The hedge fund said that Thompson, who spent only four months at Yahoo!'s helm, had to go after it found inaccuracies in his résumé and biography—Thompson had claimed to hold a computer science degree when he did not.

Yahoo! also agreed to name Third Point chief Daniel Loeb and two other Third Point representatives, Michael Wolf and Harry Wilson, to its board of directors at its annual meeting this year. The company also named one of Third Point's preferred candidates, global media chief Ross Levinsohn, interim CEO.

"We are confident this board will benefit from shareholder representation, and we are committed to working with new leadership to unlock Yahoo!'s significant potential and value," Loeb, whose hedge fund owns more than 5% of Yahoo!, said.

Thompson's is the second scalp at Yahoo! won by Third Point this year; in January, founder Jerry Yang stepped down after months of criticism from the hedge fund. But his exit may not entirely be due to the hedge fund's work: According to The Wall Street Journal, Thompson, a former PayPal CEO, has been diagnosed with thyroid cancer.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of