Yahoo’s Scott Thompson Resigns as CEO
Recently, Scott Thompson has come under fire for issues with his official biography. According to the website, he possessed a degree in computer science. In reality, he had never obtained this college degree.
Across the United States, investors called for the resignation of Scott Thompson. As CEO of the embattled company, Scott Thompson led Yahoo in its fight against market giants Google and Facebook. News of his departure was reported first on Sunday morning.
Surprisingly, Thompson chose to leave Yahoo for reasons other than his falsified application. It seems like Scott Thompson has been fighting against thyroid cancer lately and wants more time to focus on his health. The Wall Street Journal reported that Thompson told Yahoo’s board of directors about his medical issues before resigning from his position with the company.
To fill his position, Yahoo has appointed Ross Levisohn as interim CEO. Levisohn was hired by former CEO Carol Bartz before she was fired by the search engine company. He ran Internet services with News Corp. prior to his hiring in November 2010. During his time at Rupert Murdoch’s media company, he developed the experience needed to successfully run Yahoo. Recently, Levisohn ran the Americas unit of Yahoo.
As a result of Levisohn’s appointment, Yahoo stock has actually gained 33 cents. This gain brings it to $15.52 and is a 2.2 percent increase over previous trades. After Yahoo admitted that Thompson did not have a computer science degree as stated in their United States Securities and Exchange Commission filing, the stock of Yahoo had tumbled to new lows.
First news of Thompson’s false credentials was found out by the hedge fund manager Daniel Loeb of Third Point LLC. AS the owner of 5.8 percent of Yahoo’s stock, Third Point is the largest outside shareholder. Loeb has been fighting with Yahoo to install four directors on Yahoo’s board of directors. After Thompson’s phony claims came to light, Yahoo decided to settle with Loeb. If the settlement is completed, Third Point will receive three seats on the board.
All of the recent turmoil has only served to harm the Internet giant. In recent years, it has become interlocked within a fight against Facebook, Google and other online companies that have been stealing Yahoo’s share of revenue. News of Thompson’s falsifications only further entrenched Yahoo’s problems on the marketplace. As the company begins its search for a new CEO, investors will keep a close watch on the company to see if it lives up to its revenue goals for the year.