Yahoo! (YHOO) Gets Fresh Blood, Shares Rise
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Yahoo! Inc. (Nasdaq: YHOO) shares are being bid higher early Monday as investors applaud the exit of embattled CEO Scott Thompson and welcome the addition of activist investor Dan Loeb to the board.
Mr. Thompson will leave following a scandal that questioned his academic record. Loeb first discovered and made public a discrepancy over the Computer Science degree Thompson disclosed he had. Thompson also disclosed he has thyroid cancer, another apparent reason he is leaving.
In light of the news, Yahoo! named Fred Amoroso as Chairman of the Board of Directors and Ross Levinsohn as interim Chief Executive Officer, effective immediately.
Yahoo! also announced an agreement with Mr. Loeb's hedge fund Third Point LLC to settle its pending proxy contest. Under the Board's settlement agreement with Third Point, three Third Point nominees – Daniel S. Loeb, Harry J. Wilson, and Michael J. Wolf – will join the Yahoo! Board, effective May 16, 2012. Mr. Bostock, along with Patti Hart, VJ Joshi, Arthur Kern and Gary Wilson, all of whom previously disclosed their intentions not to stand for re-election, as well as Mr. Thompson, have decided to step down from the Board immediately.
Third Point Chief Executive Officer Daniel Loeb stated: "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."
Shares of Yahoo! last traded at $15.40, up 1.4 percent from Friday's close.
Mr. Thompson will leave following a scandal that questioned his academic record. Loeb first discovered and made public a discrepancy over the Computer Science degree Thompson disclosed he had. Thompson also disclosed he has thyroid cancer, another apparent reason he is leaving.
In light of the news, Yahoo! named Fred Amoroso as Chairman of the Board of Directors and Ross Levinsohn as interim Chief Executive Officer, effective immediately.
Yahoo! also announced an agreement with Mr. Loeb's hedge fund Third Point LLC to settle its pending proxy contest. Under the Board's settlement agreement with Third Point, three Third Point nominees – Daniel S. Loeb, Harry J. Wilson, and Michael J. Wolf – will join the Yahoo! Board, effective May 16, 2012. Mr. Bostock, along with Patti Hart, VJ Joshi, Arthur Kern and Gary Wilson, all of whom previously disclosed their intentions not to stand for re-election, as well as Mr. Thompson, have decided to step down from the Board immediately.
Third Point Chief Executive Officer Daniel Loeb stated: "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."
Shares of Yahoo! last traded at $15.40, up 1.4 percent from Friday's close.
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