Yahoo’s co-founder Jerry Yang has quit the struggling internet firm he started in 1995.
Yang’s been criticised by shareholders for impeding investment deals that could have transformed the company.
His abrupt departure comes two weeks after Yahoo appointed Scott Thompson as its new chief executive.
He has been tasked with returning the once-leading internet portal to the success it enjoyed in the 1990s.
Wall Street views Yang’s exit as smoothing the way for a major infusion of cash from private equity, or a deal to sell off much of its 40 percent slice of China’s Alibaba, unlocking value for shareholders and the company’s share price jumped.
Yang is severing all formal ties with the company by resigning all positions including his seat on the board of directors.
He has come under fire for his handling of company affairs dating back to an aborted sale to Microsoft in 2008 when he turned down a 37-billion-euro takeover offer.
Yahoo's Yang resigns