Explaining Southern California's economy

Yahoo resumegate: Patti Hart is off the board

stevelyon/Flickr/Creative Commons

Yahoo!'s Santa Monica location. Board member Patti Hart won't run for re-election.

Backstory: Dan Loeb, a hedge funder who runs Third Point, wants to take over a chunk of the Yahoo board, make management changes, and above all else NOT sell off Alibaba, the Asian e-commerce site that Yahoo owns 40 percent of.

The board rebuffed him, questioning his qualifications, after offering only two seats to Loeb's demand for four and saying that he couldn't have one of them. He fired back a letter revealing that Yahoo CEO Scott Thompson had misrepresented his academic record, claiming a computer science degree he never received. The Yahoo board member who oversaw the vetting of Thompson, Patti Hart, was also revealed to have fudged her degrees.

So now Hart will be leaving the Yahoo board, a position worth $80,000 a year, but with extras thrown in for serving on various committees, plus stock grants. Here's Kara Swisher, blind-sourcing the heck out of the news:

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As Dan Loeb prepares for proxy battle, things are about to get interesting at Yahoo

stevelyon/Flickr/Creative Commons

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:

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