Yahoo! Inc. offered another big surprise over the weekend: they lost another CEO.

Scott Thompson officially became Yahoo’s CEO in January after Carol Bartz was fired from the company in 2011.  But over the weekend, Thompson informed the company that he has been diagnosed with thyroid cancer and will be stepping down from his position as head of the company.  The cancer revelation came just as Yahoo’s board began investigating his academic record, which included a computer science degree that he never actually achieved.

Third Point has been battling to get a seat on Yahoo’s board for years, since they are one of the largest shareholders at Yahoo.  As they push for a seat on Yahoo’s board, they discovered that Thompson’s academic achievement was not entirely true.  Thompson’s records stated that he has degrees in accounting and computer science, but it was found out that he only has a degree in accounting.  Thompson stated that he never knew of the error and only found out when Third Point revealed it, but the executive-search firm that placed Thompson at PayPal revealed to Yahoo’s board that they have evidence that contradicts Thompson’s claims.

Yahoo announced on Sunday that Thompson will be resigning as CEO and will be replaced by senior Yahoo executive Ross Levinsohn for the time being. Yahoo also announced that their proxy dispute with Third Point will be resolved and new board members will be appointed, including Third Point head Dan Loeb.  Yahoo Chairman Roy Bostock and four other directors will immediately leave the board as they were the ones who signed off on the hiring of Thompson as CEO and the revelation of the erroneous academic credentials did not look good on them.  The position vacated will be filled by Loeb as well as two of his allies, former MTV Networks executive Michael Wolf and turnaround specialist Harry Wilson.

“This may seem like a great deal of news to digest, but as you are all keenly aware, Yahoo is a dynamic, global company in a dynamic, global industry, so change — sometimes unexpected and sometimes at lightning speed — is something we will continue to live with and something we should embrace,” Levinsohn wrote in a Sunday memo to employees that was provided to The Associated Press.

The change will not be an easy task for interim CEO Levinsohn, as the company is still struggling after years of fruitless initiatives.

“Yahoo has been floundering for years and it looks like there is going to at least several more months of indirection now that another CEO is coming in,” said Adam Hanft, who runs a consulting firm that specializes in brand reputation and crisis management.