YAHOO REACTION PAPER

Reaction Paper – Yahoo! C.E.O. Resigns Over Padded Resume On the 13th of May, 2019, the Yahoo! C.E.O, Scott Thompson decided to part ways with the company. His reason for resignation: he had had surgery for thyroid cancer several weeks earlier and was on medication which in turn could affect his performance as C.E.O. However, this event was the culmination of a tumultuous period at Yahoo! And if I were a decision maker in this case, aware of the recently opened can of worms, I would have definitely asked Thompson to resign.

On the 3rd of May, 2019, Daniel Loeb, Yahoo’s largest external shareholder, who then controlled 5.8% of the company through his hedge fund – Third Point, launched an attack on Yahoo! and its new C.E.O., alleging that Scott Thompson had lied on his resume about his academic qualifications. This was a result of a proxy war between Yahoo! and Loeb, who being a major stakeholder, wanted his choice of candidates on the board and saw Thompson as an obstacle. These allegations snowballed into a huge crisis during a trying period for the organisation.

 After rejecting a profitable takeover bid from Microsoft, steep competition from other internet giants and top level management issues, this situation weakened the company further. Thompson, in his resume, claimed to have a college degree in accounting and computer science from Stonehill College near Boston. This “claim” was published on the company’s bio and annual report, a legal document whose validity and authenticity is confirmed by the CEO.