November 19, 2008
On Monday, Jerry Yang resigned from his post as Yahoo's CEO. In late January, Yahoo rejected Microsoft's $31 a share offer, and the company has been in a slump ever since. Yahoo's stock is down 62% in the past six months.
Yang's departure has rekindled speculations that Microsoft will make a fresh bid for Yahoo.
"Jerry's resignation as CEO reflects failed promises he made while fighting off Microsoft's offers, and the board's displeasure with his go-it-alone strategy, in our view. This vacuum creates an opportunity to bring in a new chief who will make bold strategic moves or more likely, open the door to Microsoft," stated Youssef Squali, who follows Yahoo for Jefferies & Co.
Comments | 2 Total
November 19, 2008 at 11:23am by Rip Empson
Steve Ballmer, CEO of Microsoft, has repeatedly expressed interest in buying Yahoo's search business, despite saying publicly that Microsoft had no intention of pursuing a deal. It really just seems inevitable now that Yang is gone and Icahn and Chapple are in charge that some kind of deal will take place. Yahoo investors and shareholders are clamoring for a deal, considering how low morale at the company has been and how low stock price is.
The alternative, of course, is for the Yahoo Board to hire a unifier, a leader who could come in, stabilize the business and correct some of Yahoo's supposed organizational problems (climate of indecision, constant, interminable meetings and widespread overlap of responsibilities, according to the NYTimes).
Though this second option is certainly feasible, it just seems more likely in the long run that Microsoft will seek to profit from Yahoo's 500 million monthly users...
November 19, 2008 at 2:28pm by Ralph Paglia
If Yahoo! stock continues to get battered downward, Mr. Ballmer will be able to acquire the company for a fraction of the amount that Jerry Yang turned down... This will ensure Mr. Balmer's folk-hero status within the ranks of Microsoft shareholders.