Yahoo!'s CEO plans to step down in the wake of controversy about his biography, according to published media reports.
SUNNYVALE, Calif. (TheStreet) -- Yahoo!(:YHOO) CEO Scott Thompson is preparing to step down in the wake of controversy about his biography, according to published media reports.
The company's board is also close to a settlement with activist investor Daniel Loeb, the reports said.
Yahoo! plans to say that Thompson is leaving for "personal reasons," but it is clear that his departure is related to the recent controversy, said an All Things D report that cited multiple anonymous sources familiar with the situation,
The company could announce the departure as soon as Monday, The New York Times' DealBook blog reported, also citing people familiar with the situation.
Ross Levinsohn, Yahoo!'s global head of media, will replace Thompson on an interim basis, DealBook said.
The DealBook report said Yahoo! is nearing a deal with Third Point's Daniel Loeb, the activist hedge fund manager discovered that Thompson had not received a computer science degree from Stonehill College as he had claimed.
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Under the proposed settlement, which would end Loeb's proxy battle with Yahoo!, Loeb and two of his director nominees, Michael J. Wolf and Harry Wilson, will become board members, DealBook reported.
Another candidate, Jeff Zucker, will withdraw his nomination, DealBook also reported.
Yahoo!'s board launched a probe into Thompson's biography this past week.
Both All Things D and DealBook said Yahoo! representatives were not immediately available for comment.
Shares of Yahoo! closed Friday down 25 cents at $15.19.