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Mired in resume scandal, Yahoo says CEO out

UPDATED 4:31 P.M. E.D.T.

Yahoo said Sunday that Scott Thompson, its embattled CEO who was mired in a resume scandal, is leaving the company.

In a press release, the Internet pioneer said effective immediately recently added board member Fred Amoroso becomes chairman and global media chief Ross Levinsohn will serve as interim chief executive officer.

The release didn’t note a reason for Thompson’s departure, simply that he “has left the company.”

“The Company also announced that its Board has reached an agreement with Third Point LLC ("Third Point") to settle its pending proxy contest related to the Company's 2012 annual meeting of shareholders,” the company said in the statement.

Third Point LLC is a hedge fund that holds 5.8 percent of Yahoo’s common stock. It is led by Daniel Loeb, who last two weeks ago charged that Thompson, formerly president at PayPal, doesn't hold the computer science degree that's been listed in numerous biographies and securities filings.

Loeb will now be joining the board at Yahoo. Third Point threatened a proxy fight for three board seats earlier. Third Point will withdraw their candidates for the board, according to the release.

A call for comment by The Associated Press to the company about the matter ahead of the release wasn’t returned.

Yahoo is fighting Google for both customers and  revenue and is losing badly, though the company's first-quarter results showed signs of progress this year. Thompson became CEO in January.

In its first-quarter 10-Q filing with the SEC last Wednesday, Yahoo acknowledged that "uncertainties'' about Thompson and questions about the company's "future direction''could hurt business opportunities and make it difficult to attract employees and business partners.

Thompson was Yahoo's third CEO in three years.

Before joining Yahoo, Levinsohn was president of News Corp's Fox digital division.  According to Yahoo's official website, Levinsohn holds a Bachelor of Arts in Communications from The American University.   

"He is well-respected in the Valley, Hollywood and on Madison Avenue,'' said Jason Hirschhorn, a former MTV digital executive. "Yahoo has to lean into media and he has the plan.''

Previously: Yahoo CEO's resume 'error' could get him booted 

Reuters and the Associated Press contributed to this report.

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