​Yahoo CEO Fired Over Resume Clerical Error

Author: Jennifer HongBy:
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May 14, 2012

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After joining Yahoo last January, CEO Scott Thompson has faced an uphill battle that would lead to four months of tenure over his college degree scandal, which would eventually lead to him getting fired by the company.

It’s as if Yahoo is doomed to fail, facing problem after problem, and a repeat of events that took place after former CEO Carol Bartz was told of her termination over the phone.

The company is in shambles as its stock price is hovering around the $15-$16 range, no sudden increases and no drops, and it’s been that way for about a year now.

Despite the problems, most financial experts believe that Yahoo does have value, thanks to its healthy balance sheet and the more than $2 billion in cash it has with very little debt.

Measured by web traffic, Yahoo.com is ranked as the No. 4 website globally according to Alexa.

The other websites in the top 5 are: Google, Facebook, YouTube, and Baidu.

Google’s market value is around $200 billion. Facebook, with its IPO pending, is widely believed to be around $100 billion and likely a buy. Baidu’s market valuation is $43 billion even after the recent price drop.

Yahoo, on the other hand, is valued at less than $19 billion in market cap.

It’s a huge potential value to be exploited from Yahoo’s web traffic.

Activist shareholder Daniel Loeb of Third Point is gaining seats and power on Yahoo’s board, and if Yahoo can successfully build a model cash-out on its web traffic, its stock price can double in a year or two.