Yahoo CEO Thompson Resigns; Reveals Shocking News

Things just got tougher for one of the most embattled technology companies: Yahoo.

Earlier this year it announced a massive restructuring program designed to revive flagging profits. Now it will be looking for a new chief executive officer (CEO), after Scott Thompson tendered his resignation.

Last week experts and observers were stunned by reports suggesting that Thompson had padded his resume, adding an extra, unearned degree in computer science from Stonehill College in Massachusetts.

In actual fact, Thompson earned only a bachelor's degree in business administration from the small, post-secondary institution. Thompson reportedly left this glaring mistake on his resume for several years.

Major Yahoo Investor Calls for CEO Thompson's Resignation

The revelation created a great deal of buzz among members of the technology industry, and particularly among Yahoo's investors.

Some reacted with anger, particularly Daniel Loeb. His hedge fund, Third Point LLC, controls 5.8 per cent of Yahoo's stock. Loeb immediately called for Thompson's resignation.

Apparently, Loeb's demands have been met. Thompson has resigned the post he held since January, 2012.

He will be replaced temporarily by Ross Levinsohn, who made a name for himself running the web services behind Rupert Murdoch's News Corp. empire. The 48-year-old Levinsohn has been with Yahoo since late 2010.

Yahoo's board of directors will also undergo considerable reorganization, according to reports. (Source: suntimes.com)

Cancer Diagnosis Adds Drama to Thompson's Departure

Levinsohn is beginning his stewardship of  the giant company by trying to convince its investors that the shake-up is greatly to Yahoo's benefit.

"This may seem like a great deal of news to digest," Levinsohn said publicly on Sunday, May 13, 2012, "but as you are all keenly aware, Yahoo is a dynamic, global company in a dynamic, global industry, so change -- sometimes unexpected and sometimes at lightning speed -- is something we will continue to live with and something we should embrace.

"In spite of the very bumpy road we've traveled," he added, "we are achieving genuine and meaningful successes in the marketplace every day and heading in the right direction." (Source: suntimes.com)

Before tendering his resignation, Thompson reportedly told Yahoo's board he has been diagnosed with thyroid cancer. It remains unclear how much his illness contributed to his decision to leave the post he assumed less than five months ago. (Source: wsj.com)