Yahoo Co-Founder Jerry Yang Resigns

Yahoo has announced that Jerry Yang has resigned from his position with the Board of Directors, as well as with the boards of Yahoo Japan and Alibaba.

Thompson, a former PayPal president, joined Yahoo earlier this month as its new CEO, stepping into the position vacated by Carol Bartz after she was fired from Yahoo last September.

Yang served as Yahoo’s CEO from June 2007 to January 2009, when Bartz took over the role. After stepping down as CEO, Yang remained at the company as a board member. According to Yahoo’s announcement, Yang’s resignation, effective immediately, will remove him from all of his current positions at the company, including those in Yahoo’s overseas properties.

Wall Street views the exit of “Chief Yahoo” Yang 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.

Shares of Yahoo gained 3 percent in after-hours trade.