Yahoo Lays Out Peace Terms With Third Point And Ex-CEO Scott Thompson

By | Monday May 14, 2012 @ 3:41pm PDT

Yahoo ControversyThird Point CEO Daniel Loeb seems to have gotten just about everything he could want from the settlement agreement with Yahoo, disclosed today in an SEC filing. Yahoo agreed to pay Third Point $4M to compensate … Read More »

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UPDATE: Yahoo CEO Revealed Cancer Diagnosis Before Resigning, WSJ Says

By | Monday May 14, 2012 @ 12:31pm PDT

Yahoo CEO CancerUPDATE, 12:31 PM: The Wall Street Journal is reporting that Yahoo CEO Scott Thompson told the board over the weekend that he has been diagnosed with thyroid cancer. The WSJ says the disclosure might have impacted the company’s decision to accept Thompson’s resignation. The report adds that Thompson began telling colleagues as early as Friday that he was stepping down. Meanwhile, CNNMoney is reporting that Thompson could owe up to $7 million in upfront bonus money he received when he was hired in January.

Related: New Yahoo CEO Could Make $27M in 2012

PREVIOUS, SUNDAY PM: It’s official: Thompson’s four-month reign is over, following the disclosure that he misrepresented his bachelors’ degree. He “has left the Company,” Yahoo says — and the board has a deal with Third Point CEO Daniel Loeb, who has abandoned his proxy fight. Ross Levinsohn replaces Thompson as interim chief executive “effective immediately.” Roy Bostock has stepped down as Non-Executive Chairman, replaced by Fred Amoroso. In addition, hedge fund manager Loeb and two allies — media consultant Michael Wolf and restructuring expert Harry Wilson — will join the board on Wednesday. Former NBCUniversal CEO Jeff Zucker won’t be with them. With only three board seats going to Loeb’s group, Zucker says he agreed to step aside “to quickly facilitate a settlement.”

Here’s the announcement: Read More »

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Yahoo CEO Scott Thompson Will Resign, Settlement With Dissident Shareholder Near: AllThingsD

By | Sunday May 13, 2012 @ 9:44am PDT

Things are still in flux — the Yahoo board is meeting this morning to discuss, AllThingsD reports. Still, the ability of hedge fund manager Daniel Loeb to force Yahoo’s hand raises big questions about the company’s strategic direction. For … Read More »

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Yahoo Shareholder Steps Up Effort To Oust CEO Scott Thompson

By | Wednesday May 9, 2012 @ 8:46am PDT

Third Point CEO Daniel Loeb, who controls 5.8% of Yahoo’s shares, continues to punch away at the Yahoo board — which seems to already be on the ropes following the disclosure that Thompson misrepresented his bachelor’s degree. This morning Loeb sent directors a letter urging them to place himself and three colleagues (including former NBCUniversal chief Jeff Zucker) on Yahoo’s board. He wants them to name an interim CEO to replace Thompson. And he wants one of his allies, media consultant Michael Wolf, to chair a search committee to find a full time replacement. “Third Point has over $1 billion invested in Yahoo! and we take no joy in witnessing this carnage,” Loeb writes. “This Board’s unchecked value destruction must stop once and for all.” Read More »

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UPDATE: Yahoo Committee To Investigate CEO’s Academic Credentials

By | Tuesday May 8, 2012 @ 12:03pm PDT

Yahoo BoardUPDATE, 12:40 PM: Yahoo‘s board has announced it has formed a special committee to review CEO Scott Thompson’s academic credentials and how they were disclosed during the hiring process. It has brought on an independent counsel … Read More »

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Yahoo Dissident Shareholder Wants To See Records For CEO And Director Hiring

By | Monday May 7, 2012 @ 10:07am PDT

Yahoo Controversy Scott ThompsonThis is the next shoe to drop after the board didn’t go along with the demand by Third Point chief Daniel Loeb to fire Yahoo CEO Scott Thompson by noon ET today. The hedge fund manager. who controls 5.8% of Yahoo shares, says that Delaware General Corporation Law entitles him to inspect books and records beginning September 1 tied to the board’s decision to hire Thompson, as well as other material that would shed light on the naming of directors Patti Hart, Peter Liguori, John Hayes, Thomas McInerney, Maynard Webb Jr, and Fred Amoroso. The dissident shareholder has hired law firms Willkie Farr & Gallagher and Bouchard Margules & Friedlander to conduct the inspection on his behalf. Read More »

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Yahoo’s Largest Shareholder Wants CEO Scott Thompson Fired By Monday

By | Friday May 4, 2012 @ 12:11pm PDT

UPDATE, 12:45 PM: Here’s Yahoo’s response to Daniel Loeb: “As we have previously said, the board is reviewing this matter and, upon completion of its review, will make an appropriate disclosure to shareholders.”

PREVIOUS, 12:11 PM: Third Point CEO Daniel Loeb, who owns 5.8% of Yahoo‘s stock, made his demand following the revelation yesterday that the company’s proxy and web site inaccurately described Thompson’s college credential. Yahoo said that he had a bachelor’s degree in accounting and computer science from Stonehill College. But it acknowledged that it made an “inadvertent error” after Loeb checked and discovered that the school didn’t offer a computer science major when Thompson graduated. Loeb says today, in a letter to the board, that the company’s response was “the height of arrogance” — belittling the likelihood that Thompson misrepresented his qualifications, and that the board didn’t double check his information. “Mr. Thompson and the Board should make no mistake: this is a big deal,” Loeb says. “CEOs have been terminated for less at other companies.” He wants the board to fire Thompson “for cause immediately given his demonstrable unsuitability to remain Chief Executive Officer and a director of Yahoo!” If that’s not done by noon ET on Monday, Read More »

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Dissident Yahoo Investor Challenges CEO’s College Record

By | Thursday May 3, 2012 @ 1:49pm PDT

This isn’t a huge scandal, but it does provide Third Point CEO Daniel Loeb — who owns 5.8% of Yahoo shares — with some fodder for his campaign to shake up the company’s board. It seems that Yahoo’s draft proxy statement and web site say that CEO Scott Thompson earned a bachelor’s degree from Stonehill College in “accounting and computer science.” But Loeb says in a letter today to the board that when he checked, ”Stonehill College informed us that it did not begin awarding computer science degrees until 1983 — four years after Mr. Thompson graduated.” Loeb adds that if Thompson “embellished his academic credentials we think that it 1) undermines his credibility as a technology expert and 2) reflects poorly on the character of the CEO who has been tasked with leading Yahoo! at this critical juncture.”

Yahoo admits that “there was an inadvertent error that stated Mr. Thompson also holds a degree in computer science.” His degree is in business administration with a major in accounting. “This in no way alters that fact that Mr. Thompson is a highly qualified  executive with a successful track record leading large consumer technology companies,” Yahoo says. Read More »

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UPDATE: Yahoo CEO Says Company Must “Re-invent” Services

By | Tuesday April 17, 2012 @ 3:10pm PDT

Yahoo EarningsUPDATE, 3:10 PM: Scott Thompson gave analysts fair warning that they’re in for a roller-coaster ride while he deals with the rot he found at Yahoo after he landed the top job in January. Following his recent 2,000 layoffs, Thompson says he plans to pull the plug on some unnamed technologies, consolidate several business lines, and focus R&D on Yahoo-owned businesses as opposed to initiatives like the one to create platforms for outside publishers. The company “has been doing way too much for too long and has only been doing a few things really well.” Thompson added that Yahoo needs to be “clearer going forward about what we won’t do”, noting that the company “had way too many people for the output” from its businesses. He offered few specifics about what he wants to do, but said while Yahoo doesn’t have to re-invent itself he intends to ”re-invent the experiences our users have” with its most popular websites and services. Notably, Yahoo has to “get good real fast” in mobile services and devices. “Over time we will earn the right to pursue new growth opportunities.” Read More »

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Yahoo Chief Plans Big Meeting Next Week As Upheaval Continues

By | Friday April 6, 2012 @ 6:03am PDT

There’s one more corporate casualty at Yahoo following this week’s 2,000 layoffs: Chief Product Officer Blake Irving, whose operation was hit hard by the sackings, resigned. He opposed CEO Scott Thompson’s decision to let 14% of the company’s workforce … Read More »

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Yahoo Layoffs Coming Next Week: AllThingsD

By | Friday March 30, 2012 @ 5:33pm PDT

Yahoo LayoffsThe layoff of “what could be thousands of employees” would come ahead of an announcement the following week of a restructuring at Yahoo, according to the Wall Street Journal’s All Things D blog. The same blog … Read More »

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Yahoo Plans Massive Layoffs: Report

By | Monday March 5, 2012 @ 10:22am PST

Yahoo Layoffs 2012The damage could be “in the thousands” and could take place by the end of this month, AllThingsD reports. The website says that Yahoo CEO Scott Thompson is targeting the company’s large products organization, as well … Read More »

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Yahoo Chairman Roy Bostock Departing

By | Tuesday February 7, 2012 @ 3:10pm PST

In a letter to shareholders today, Bostock said he and three other Yahoo board members — HP’s Vyomesh Joshi as well as Arthur Kern and Gary Wilson — will not seek re-election at the next shareholders meeting. He also … Read More »

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Yahoo Revenues And Earnings Fall In 4Q But Match Expectations

By | Tuesday January 24, 2012 @ 1:23pm PST

Seems like nothing surprises investors anymore when it comes to Yahoo, which may explain why the company’s shares are nearly flat in after-hours trading despite its lackluster 4Q report. The company came in with net earnings of $296M, down … Read More »

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New Yahoo CEO Could Make $27M in 2012

By | Friday January 6, 2012 @ 4:50pm PST

Scott Thompson will receive an annual salary of $1 million as Yahoo’s new president and CEO, the company said in a Security and Exchange Commission filing today. His total deal with bonuses and grants could reach as high as … Read More »

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UPDATE: New Yahoo CEO Scott Thompson Joins Strategic Review Effort As Company Vows To Stay Publicly Traded

By | Wednesday January 4, 2012 @ 6:19am PST

UPDATE, 7:35 AM: Chairman Roy Bostock said in a conference call that Yahoo handed the CEO job to Scott Thompson, a technology guy from PayPal, instead of to a turnaround or media specialist because “the key to success in advertising is providing a great customer experience.” He added that ”Scott knows how to reach out to [advertisers] and learn what they need and what they want.” Bostock wouldn’t discuss Yahoo’s strategic review — except to note that “the primary focus will be on the core business” and that Thompson will be part of the review process. Bostock did say, though, that he expects Yahoo to remain publicly traded. The possibility of going private “is a moot issue as far as I’m concerned.”

As one might expect, the new CEO stuck with broad generalities. “It’s too early for me to have any informed opinions” about the display ad business, Thompson said. His top priorities will be to “grow shareholder value and top-line growth.” Yahoo’s “core assets are stronger than people believe.” Thompson plans to study usage statistics. “Down in the data we’ll find ways to compete and innovate that the world hasn’t seen yet.” He says the changes in the Web over the next five years are “hard to imagine,” but “we’ll be back to innovation and disruptive content” including on mobile devices.

PREVIOUS, 6:19 AM: Yahoo has been driving to become one of the Web’s leading ad-supported content providers, but it turned the top job over to an executive with a deep resume in technology. Scott Thompson was PayPal’s Chief Technology Officer before becoming its President. Before that he was EVP technology solutions at Inovant, a Visa subsidiary that oversees the company’s global technology. He also was Chief Information Officer of Barclays Global Investors, and worked with Coopers and Lybrand to help provide information technology to financial services companies. Read More »

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