Yahoo!'s Santa Monica location. Embattled CEO Scott Thompson was caught faking his resume and could resign this week.
It's unclear whether Scott Thompson, the Yahoo CEO who was caught faking his resume last week by activist hedge-fund investor Dan Loeb of Third Point, will stay or go as the latest leader of the embattled Internet giant. The Guardian suggests he could be gone this week. But it also fudges a bit, quoting Colin Gills of BGC Financial, who says that canning Thompson would be a major setback for Yahoo's turnaround plans.
In any case, who is this Dan Loeb, owner of almost 6 percent of Yahoo and a perpetual thorn in the side of the company's management and board?
He's a man who's unafraid to express his outrage, as it turns out. But his vehicle is so old-fashioned that it's almost charming. Last week, he attacked Thompson using the form of communication that predates the Internet, search engines, hedge funds, iPhones, automobiles, indoor plumbing, the United States of America, and sea voyages under sail. That's right, he wrote a...letter.
Yahoo!'s Santa Monica location. A shareholder proxy battle may loom.
Recently, Yahoo admitted that it can't come to terms with Dan Loeb, who runs a hedge fund called Third Point that owns a decent percentage of the struggling Internet company and really, really doesn't like where Yahoo is going. Yahoo isn't nuts about Loeb, either — and said so when it revealed that it isn't going to let him gain a seat on the board on directors.
Loeb owns almost six percent of the company and has been making noise for months now about undertaking a proxy battle for control the Yahoo board. He's been extremely un-quiet about what he thinks Yahoo is doing wrong, going so far as to establish a website, valueyahoo.com, which outlines Third Point's case for turning Yahoo around and replacing four board members with its own slate.
Here's the vision that Loeb & Co have outlined: