The Yahoo fiasco seems to have taken more toll than we have expected it to be. While we posted earlier that Yahoo’s CEO, Scott Thompson, had resigned over the whole issue that ensued because of a critical error in his resume, it now seems that he was not the only one to resign. Along with, four members of Yahoo’s board of directors.
The whole issue had started when the investment firm, Third Point, discovered the resume error. As a result, Daniel Loeb, one of the chief investors in Yahoo, started demanding that Thompson should resign immediately and a new CEO must be chosen. While initially Yahoo chose not to respond to this, now it seems that Loeb did score a win after all.
Thompson was not the only one to resign over this issue. Alongside, four members of the board, including VJ Joshi, Patti Hart, Arthur Kern and Gary Wilson, also resigned. This is on top of the fact that the Chairman of the board, Roy Bostock, has already been replaced by Fred Amoroso.
Interestingly, all this fared exceptionally well for Loeb who has been able to get himself a nice, solid presence on the board. Yahoo has allowed Loeb and two of his allies to be a part of the board as part of the settlement agreed upon by Third Point and Yahoo.
Loeb was definitely joyous over the news, “Harry, Michael, and I are delighted to join the Yahoo Board and work collaboratively with our fellow directors to foster a culture of leadership dedicated to innovation, excellence in corporate governance, and responsiveness to users, advertisers, and partners. 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.”