Hedge Funds

Yahoo! RésuméGate, Day 7: Third Point Is Not Enjoying This At All

In fact, hand to god, Dan Loeb and Co. find this “embarrassing episode” that they set the wheels in motion for painful to watch.

Dear Board of Directors:

Six days have passed since Yahoo! acknowledged the fabrications in Chief Executive Officer Scott Thompson and Director Patti Hart’s resumes. Since then, the following has occurred: (i) shareholders have been told that Mr. Thompson’s errors were “inadvertent”, (ii) Mr. Thompson made a classic “I’m sorry you feel that way” non-apology without actually accepting responsibility, (iii) Ms. Hart announced she will not seek re-election to the Board presumably due to her leadership of the botched CEO hiring process but intends to serve out her term, and (iv) the Board has formed a special committee to conduct a “thorough review” into Mr. Thompson’s academic credentials.

It appears very clear to us – and to many corporate governance experts, Yahoo! employees, and fellow Yahoo! shareholders – that Mr. Thompson’s fantasy degree was in no way an “inadvertent error”. The evidence shows he had been using false credentials for years. Mr. Thompson’s “apology” was clearly insufficient and it seems that the only thing he actually regrets is that he has been caught in a lie and publicly exposed. Without any explanation or accountability, Yahoo! has been left to flounder under a discredited leader for an undefined period. So, after six days, we must ask – what is this Board waiting for?

It seems farcical to us that the Board will most likely spend more time deliberating over whether Mr. Thompson should be fired than it did properly vetting whether he should have been hired. The necessary investigation into whether certain senior executives and Board Members knew of Mr. Thompson’s deceptions before hiring him should not delay decisive action over his ethical breaches.

Third Point has over $1 billion invested in Yahoo! and we take no joy in witnessing this carnage. This Board’s unchecked value destruction must stop once and for all. Therefore, we once again call upon the Board to immediately (i) place Third Point’s entire slate on the Board replacing Mr. Thompson and Ms. Hart, (ii) appoint an interim CEO—we would suggest CFO Tim Morse or Head of Global Media Ross Levinsohn (assuming neither had any knowledge of Mr. Thompson’s fabrications) and (iii) allow Third Point nominee Michael Wolf to Chair the Search Committee for a new permanent CEO (Mr. Wolf will waive the $15,000 fee that Ms. Hart received for her work as Head of the Search Committee last year, which we expect she will promptly disgorge).

This is the only way for Yahoo! to move past this embarrassing episode.

Daniel S. Loeb
Chief Executive Officer
Third Point LLC

(hidden for your protection)
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50 Responses to “Yahoo! RésuméGate, Day 7: Third Point Is Not Enjoying This At All”

  1. Equity analyst quant says:

    You have over $1bn invested in Yahoo? Well, there's your problem, right there.

    • dumb says:

      Hey, i take offence to that….

      Jerry Yang
      Co-founder and former CEO of Yahoo

    • Headless_Horseman says:

      Investing $1bn in Yahoo! is like owning 12 acres of a 9 acre farm.


    • Guest says:

      Third Point has over $1 billion invested in Yahoo!

      – guy who thought for a second he was excited about it until he read "and we take no joy in witnessing this carnage."

  2. Jerry Y says:

    I did a quick Yahoo! search for HF managers with soul patches and it came up empty

  3. Hansel says:

    I wasn't like every other kid, you know, who dreams about being an astronaut, I was always more interested in what bark was made out of on a tree.

  4. Bandersnatch says:

    Take no joy in witnessing this carnage? Bullshit. Loeb thinks he's Patton: "I love it. God help me I do love it so. I love it more than my life."

    • Guest says:

      "Now there's another thing I want you to remember: I don't want to get any messages saying that we are holding our position. We're not holding anything; let Yahoo! do that. We are advancing constantly, and we're not interested in holding onto anything except board seats. We're going to hold onto these directors by the nose and we're going to kick them in the ass. We're going to kick the hell out of them all the time, and we're going to go through them like crap through a goose."

      – General D. S. Loeb

  5. guest says:

    Daniel Loeb trying the easiest way to become a millionaire, start with a billion and buy YHOO

  6. merriam webster says:

    Loeb's thesaurus must be tired

  7. Concerned Headhunter says:

    But he had 20,000 connections on LinkedIn !!!

  8. Oklahoma Mullet says:

    I wish Loeb owned 20% of CHK.

    • Mason Hawkins says:

      Didnt like our bizarre rambling letter, passively aggressively calling for the sale of the company, but not at too low a price?

  9. Gerri Ying says:

    Low blow, Loeb, loe bloe.

  10. MMA Phiter says:

    End quotes should appear outside of the punctuation. Other than that, I have no concerns.

    -Word Processor Monkey Boy

  11. Wall St. Dude says:


  12. Bishop Sheen says:

    There was a "St. Dude"? And why would you want to "wall" him?

  13. Guest says:

    Yahoo doesn't care about his academic record. This became obvious when they made a Stonehill College grad their CEO.

  14. Indubitably says:

    Is this what people do all day on the buy side? Sit around and check cross Google searches against 10Ks?

    -Guy who still dreams of the buy side

  15. pazzo83 says:

    Farcical in an aquatic ceremony type of way?

  16. Guest says:

    I bet Loeb's wife is completely satisfied in the bedroom. For sure.

  17. Jules says:

    You sending the Wolf?

    You feel better $%*#&?

    Sh** *$@#$ thats all you had to say!

  18. pazzo83 says:

    1. Take a significant long position in a company (e.g. buy $1bn of their stock)
    2. Do everything humanly possible to tarnish said company's image in the public eye
    3. ???
    4. Profit!

    – UBS Portfolio Management

  19. sistermaryelephant says:

    I hope you know this will go down on your permanent record.

  20. Robert Winkle says:

    Dan – Why didn't you listen to me?

  21. Frequent gorger says:

    No "promptly disgorge" tag?

  22. Leopold says:

    And you call this the perfect crime?

  23. Guest says:

    If this Yahoo! thing doesn't work out Loeb has a bright future selling access to the "Things that Piss Me Off" folder of his Outlook Inbox.

  24. guest says:

    Patti Hart: This is pathetic!
    DL: You're pathetic.

  25. davidrusso says:

    More impressive than my wicked vitriol and attention to detail is the fact I was able to type this letter at all with my huge, throbbing erection getting in the way.

    D. Loeb

  26. Shecky Filo says:

    I really, really like Yahoo! Calendar…….. but it looks like its days are numbered.

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