Third Point squeezes Yahoo again to oust CEO

Phil Mccarten / Reuters

Daniel Loeb, CEO of Third Point LLC, has again called for Yahoo's board to oust CEO Scott Thompson over what he says are ethical breaches.

By Patrick Rizzo

Saying that "we take no joy in witnessing this carnage," activist investor Daniel Loeb repeated his demand Wednesday that Yahoo dump CEO Scott Thompson over discrepancies in his academic record and?replace him with?an interim CEO.

"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,' " Loeb said in a letter from his Third Point LLC hedge fund addressed?to Yahoo's board of directors.?

"Third Point has over $1 billion invested in Yahoo! and we take no joy in witnessing this carnage," the letter said.

Third Point, which owns 5.8 percent of Yahoo's shares, set off a firestorm?last week by revealing that Thompson, who is only a few months into his tenure,?had?fudged his academic credentials on securities filings, saying that he had a degree in computer science when he did not.

Since then,?Thompson has apologized for the ruckus caused by?what the company called an?"inadvertent error," and announced that director Patti?S. Hart, who led the search committee that landed Thompson the job,?will?not stand for re-election.?

The board?also?reportedly is conducting an internal?review of the matter.

But Loeb was having none of that.

"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," Loeb said in the letter.

CNBC's Jon Fortt reports on Third Point's claims regarding Yahoo CEO Scott Thompson's college degree. CNBC's Herb Greenberg, Brian Sullivan and Mandy Drury discuss.

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