A somewhat predicted conclusion to Yahoo's recent rough ride sees company co-founder Jerry Yang leaving his post as CEO after a suitable replacement is found to take Yahoo to "the next level." CNN Money reveals that chairman Roy Bostock is conducting interviews internally and externally, which will then place Yang back in his former position of "Chief Yahoo," remaining on the company's board of directors.
Yahoo's top executive, CEO Jerry Yang, could resign to avoid a forced departure ahead of a decisive shareholders meeting on August 1st, according to new rumors. Yang and one of Yahoo's most influential shareholders, Gordy Crawford, butted heads at a recent meeting, sources say, with the latter and his top analysts questioning Yang's arguments and demanding an update on Yahoo's near-term strategy. Crawford has expressed interest in Carl Icahn's proxy takeover for Yahoo, which would likely lead to Microsoft taking over the company.
Investor Carl Icahn on Wednesday issued a letter addressed to Yahoo chairman Roy Bostock, claiming that the actions of CEO Jerry Yang and other members of the board went out of their way to sabotage a potential deal with Microsoft. Silicon Alley Insider reports that the letter sets up a villainous scenario related to the show-stopping severance plan a state judge revealed on Monday. The plan would have a potential cost of $2.1 billion to Microsoft, had the unlikely scenario occurred where all employees quit upon a takeover.
With Microsoft retracting its bid Saturday, Yahoo CEO Jerry Yang today announced it would listen to any interested bidding parties, including Microsoft, despite explicitly saying the company is for sale.Bloomberg reports that Yahoo is currently evaluating revenue-generating relationships with companies such as Google and AOL to raise the company's value, but is leaving the door open "should somebody else come back someday and want to buy the company", said Yang.
Yahoo's board of directors is torn between those seeking profit and others who would make an emotional decision to reject Microsoft's buyout attempt, according to sources cited by a report from the New York Post online. Yahoo chief Jerry Yang and several followers are allegedly seeking an alternative to Microsoft's takeover bid of $44.6 million, and could act out of emotion rather than their fiduciary duty to the company's shareholders. "The emotional part of Yang would rather do anything but sell to Microsoft, but he doesn't have the cards to come up with a value-creating, competitive alternative for shareholders," said one source.
Yahoo CEO Jerry Yang today sent a letter to the company's stockholders in an attempt to reassure investors of its stance on the Microsoft deal. Yang claims that Yahoo is positioned to increase its value by around 60-percent by 2010, by emphasizing on its current business model. Citing the company's Panama search marketing system, Right Media buyer/seller meet-up service, and Blue Lithium marketing system, Yahoo is poised to grow its $2 billion in cash reserves to the double-digits by 2009.
