Dan Loeb Third Point Yahoo

Dan Loeb Third Point Yahoo

Third Point Hedge Fund at Center of Yahoo CEO Trouble

Yahoo has seen its share of troubles and now the technology company is facing another problem as it seeks to mollify investors angry over an inaccuracy surrounding the new CEO's credentials.  One investor, hedge fund Third Point, has asked Yahoo to dismiss the CEO under fire, Scott Thompson, after it was revealed that he only achieved a degree in Accounting, not Accounting and Computer Science as was previously thought to be the case--an important distinction, Third Point's Dan Loeb argues, because Yahoo is a tech company and a background in the industry is relevant to investors.

In a letter to shareholders, Mr. Loeb called for Mr. Thompson to be fired and for, Patti Hart, the Yahoo executive who led the CEO search committee, to resign--in a twist, it was also revealed that Ms. Hart appears to have claimed different academic credentials than what she earned as an undergraduate.  It remains to be seen whether Yahoo will acquiesce to the demands made by this hedge fund manager and other investors; the company is conducting a review of the matter.
In a letter to shareholders on Friday, Third Point’s founder, Daniel S. Loeb, called for Mr. Thompson to be fired and for Ms. Hart to resign. Mr. Loeb also raised concerns about whether Yahoo had filed erroneous information in securities filings and other documents. 
“Irreparable damage to Yahoo’s culture will continue every day that the board allows Mr. Thompson and Ms. Hart to remain at the helm of the company after having clearly demonstrated that they lack even the ‘minimum qualifications for service as a director of the company,’ ” Mr. Loeb wrote. 
A spokeswoman for Yahoo, Amanda Pires, said in a statement: “As we have previously said, the board is reviewing this matter and, upon completion of its review, will make an appropriate disclosure to shareholders.” 
Earlier this year, Third Point started an aggressive battle against Yahoo, questioning the company’s strategic direction and its choice of new directors, who Mr. Loeb said lacked advertising and media expertise. The hedge fund is seeking four board seats at Yahoo. Source

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