Bangalore: Jerry Yang, the Co founder and CEO of Yahoo resigned from all his posts in the company including boards of Yahoo Japan and Alibaba group  Holding Ltd., following major troubles that company faced in recent years.

The resignation of Jerry, who held a 3.8 percent stake in Yahoo, is expected to help company and its recently appointed CEO, Scott Thompson with plans on selling much of assets in China and Japan.

Yang founded Yahoo along with David Filo in 1995 and took the company to a value more than $120 billion in 1999.

But with the strategic plans which caused the fall of company in recent years, Yang has been criticized by many stakeholders and financial analysts. He solely held responsibility for rejecting a takeover bid from Microsoft worth above $44 billion in 2008, after which the company never recovered.

According to Greg Sterling of the Sterling market intelligence, “Maybe Yang is the sacrificial lamb, there may be more board resignations and substitutions coming."

In a letter to Yahoo Chairman Roy Bostock, Yang wrote, “the time has come for me to pursue other interests outside of Yahoo! As I leave the company I co-founded nearly 17 years ago, I am enthusiastic about the appointment of Scott Thompson as CEO and his ability, along with the entire Yahoo! leadership team, to guide Yahoo! into an exciting and successful future."

The CEO’s resignation reflected in the market with Yahoo stock gaining 3 percent to $15.90 in afterhours trading.