Yahoo! Inc. said Chief Executive Officer Scott Thompson is stepping down after failing to correct errors in his credentials and the company is revamping its board, handing a victory to activist investor Daniel Loeb, who had pushed for the overhaul and said the Web portal is mismanaged.
Ross Levinsohn, Yahoo’s head of global media, was named interim CEO, and director Fred Amoroso will become chairman, the Sunnyvale, California-based company said in a statement yesterday. Amoroso replaces Roy Bostock, the non-executive chairman, who is exiting the board immediately. Yahoo agreed to add Loeb to its board along with two other directors nominated by his fund, Third Point LLC, to end a proxy fight.
Before resigning as chief executive, Thompson told the directors and several colleagues that he has been diagnosed with thyroid cancer, the Wall Street Journal reported today, citing people familiar with the matter it didn’t identify.
Third Point had been locked in a dispute with the company about its direction and appointments to the board, calling Yahoo one of technology’s “most mismanaged companies.”
Thompson also engineered the company’s expansion to online daily deals and mobile payments.