Yahoo (YHOO) has been in the news quite a bit over the past few months as the company attempts to take several steps to regain its financial footing. One of the most recent efforts involves the company trying to fend off criticism from not firing its CEO for lying on his resume.
In early May, hedge fund company Third Point demanded that Yahoo’s CEO Scott Thompson resign because he lied on his resume. The company, led by CEO Daniel Loeb, demanded that Thompson be fired by noon on Monday, May 7. The deadline date came and went with no action by Thompson or its board of directors. In response, Third Point then demanded that Yahoo make its books and records available to it.
Investors seemed to welcome Third Point’s demands, with the stock rallying that Monday. The stock rose 2.2% to roughly $15 by the closing bell. Yahoo’s shares had been falling prior to Monday.
However, clearly the Thompson resume debacle is another headache that Yahoo does not need. At the time of writing, Thompson had issued an apology letter. It’s unclear whether or not the apology will impact the board of directors’ decision on his future with the company. I think the apology is too little, too late.
All of this comes at the worst possible time for the Internet provider. The company has been entangled in legal battles with its competition, with the main one concerning Facebook (FB).To continue reading, click here.