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Yahoo is hunting for a new CEO after Jerry Yang announced plans to step down due to public pressure

Yahoo has confirmed that co-founder and CEO Jerry Yang will step down, and the search for a replacement has begun.

Yang will step down as CEO once a replacement is found, and will go back to being "Chief Yahoo," which was his previous job at Yahoo.  He will focus on Yahoo's global strategy and will attempt to try and help Yahoo in its most tumultuous time.

"Jerry and the board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level," Yahoo board members said in a statement.  "We are deeply grateful to Jerry for his many contributions as CEO over the past 18 months, and we are pleased that he plans to stay actively involved at Yahoo as a key executive and member of the board."

Yang publicly stated he wished to remain in control of Yahoo, but the company's board faced too much pressure to try and replace him because of failed business deals over the past few months.

Yahoo will work with executive search firm Heidrick & Struggles to help look for a new candidate -- the board will consider Yahoo executives and outsiders.

After becoming CEO in June 2007 Yang saw success, but his tenure as CEO will likely be remembered as a failure due to a stifled bid by Microsoft to take over the search engine giant.

After months of publicly trading arguments, Microsoft eventually offered to purchase the company for a reduced price, which was again turned down.  In early September, the company's stock price plummeted to $17.81; a number that some analysts predicted would be the lowest it would reach before Yahoo could turn things around.  Yahoo's shares closed today at $10.63 -- its lowest sharing price in five years.

To add to a growing list of problems, a possible search-ad partnership with Google collapsed earlier in the month after Google chose not to try and fight the Justice Department and its threat of an antitrust lawsuit.  U.S. regulators said they would file a lawsuit because Google would have too much control of the advertising market, which the Mountain View company already dominates.

Yahoo's income has fallen 51 percent due to sagging growth and continued market share loss to Google, which led the Sunnyvale, CA-based company to cut 1,500 more employees.  Company executives said they hope the job reduction will help reduce costs while hopefully not dropping profitability.

Yahoo strongly relies on the advertising market that will likely suffer from the global economic collapse.  Analysts expect online ads to be better off than TV or print ads, but because Yahoo relies heavily on graphical display ads instead of text ads like Google, it is unknown what will happen in the coming months.

"All of you know that I have always, and will always bleed purple.  I will always do what I think is right for this great company," Yang said in an internal memo to employees.



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Another victim of the crashing U.S. economy
By SunAngel on 11/17/2008 9:45:42 PM , Rating: 1
First Hector Ruiz and now Jerry Yang.

Whose next? John Chambers?

Geez, can the U.S. executives catch a break these days?




RE: Another victim of the crashing U.S. economy
By OblivionMage on 11/17/2008 9:52:18 PM , Rating: 5
I think this has more to do with his poor management over the past few months and "failed business deals."

Correct me if I am wrong.


RE: Another victim of the crashing U.S. economy
By quiksilvr on 11/18/2008 1:31:37 AM , Rating: 4
Yahoo, Circuit City, hell even Sun Microsystems, GM and Ford are going down rough roads. Now personally I can care less about the CEOs because they are pretty much covered in the whole having a place to stay and food to eat department, but what I am more worried about are the thousands of employees without a job. Hopefully the competition will be more gracious and open up some positions for those that are falling victims to all this.


RE: Another victim of the crashing U.S. economy
By Kougar on 11/18/2008 10:19:44 AM , Rating: 4
I know less about Sun Microsystems, but the other companies you've listed have been carrying on untenable business practices or simply not been profitable long, long before the current financial mess started. As with every recession, those companies with the most ineffective business strategies or are unprofitable are going to run out of luck, along with the stream of credit they had previously been using to tread water.

The Big Three auto makers virtually guaranteed they would set up a worst case scenario by their past business decisions and how they structured their entire business. They built more plants than they should have and each of those plants was expected produce a large capacity of vehicles, a bare minimum rate had to be produced to keep a plant profitable. Before this current mess even started the Big Three were having to trim back plant output at various plants. They had built their entire business model around a unrealistic expectation of demand leading to a completely absurd case of overcapacity, turning what ability they had to generate a small profit into a completely unprofitable situation.

Circuit City is just another case of poor executive decision making. I believe it was way back in spring 2007 they fired their most experience employees because they made a few cents more per hour above an arbitrarily set pay grade. Anyone with common sense knew back then could see Circuit City was starting a slow spiral down into bankruptcy at the time, there were plenty of warning signs.


RE: Another victim of the crashing U.S. economy
By Ringold on 11/18/2008 1:48:21 PM , Rating: 3
quote:
As with every recession, those companies with the most ineffective business strategies or are unprofitable are going to run out of luck, along with the stream of credit they had previously been using to tread water.


In the words of Warren Buffet, we don't know who is swimming naked until the tide goes out.


By dragonbif on 11/18/2008 4:41:41 PM , Rating: 2
It is true. But also most CEO's are just paper rich and do not have allot of liquid assets as their money is mostly in stocks and other investments. Most CEO's only get 200k to 400k in pay per year but they do get millions in stocks. If you can not sell your stocks then they are worthless the stocks are the CEO's 'incentive' to make the company do will. That also means they can't sell all their stocks or people will notice and that would cause all sorts of problems.

Remember those TV commercials Yahoo used to have back when they were the big thing? What ever happened to them who know they may have done better if they did not stop the adds. Yahoooooo!


RE: Another victim of the crashing U.S. economy
By 67STANG on 11/17/08, Rating: -1
By phatboye on 11/17/2008 11:17:42 PM , Rating: 5
[sarcasm]Yeah, the co-founder of a multi-billion dollar company is a "failure at life".[/sarcasm]

He may have made a few bad decisions that may have cost him dearly, but to claim that he is a failure is just stupid.


By ipay on 11/17/2008 11:26:51 PM , Rating: 5
A "failure at life" that is richer and contributed more to the world than you will ever be.

Yay I want to be this failure too.


RE: Another victim of the crashing U.S. economy
By chick0n on 11/18/2008 12:48:49 AM , Rating: 2
rofl. Im sure he is WAY more successful than your sorry ass sitting at home to post a reply for DailyTech.

Get lost loser. u're the one who truly failed @ life.


RE: Another victim of the crashing U.S. economy
By 67STANG on 11/18/08, Rating: -1
RE: Another victim of the crashing U.S. economy
By OoklaTheMok on 11/18/2008 1:48:59 AM , Rating: 1
Worst business decision in tech history? I doubt that...

Let us remember...

AOL - Time/Warner merger

Carly Fiorina and the HP / Compaq merger


RE: Another victim of the crashing U.S. economy
By FITCamaro on 11/18/08, Rating: -1
By waltzendless on 11/18/2008 6:24:54 AM , Rating: 5
Settle down boys, stop fapping to your own ego and intelligence. Take the horseplay somewhere else.


RE: Another victim of the crashing U.S. economy
By InvertMe on 11/19/2008 2:13:49 PM , Rating: 2
quote:
by 67STANG on November 18, 2008 at 1:17 AM

Actually, I'm still employed. And I'm WAY more successful than your sorry ass.


So how much is Burger King paying these days? It seems like a recession proof industry so you should feel secure in your job.


By pomaikai on 11/19/2008 2:38:52 PM , Rating: 2
Alright, show the numbers. Whos e-stats are better?


By MonkeyPaw on 11/17/2008 10:23:54 PM , Rating: 2
quote:
Geez, can the U.S. executives catch a break these days?


I'm sure their severance packages are far more comforting than our sympathy.


By Pneumothorax on 11/17/2008 10:46:31 PM , Rating: 2
Could we please add the CEO's of the Big 3? Those guys ahould be canned before another taxpayer dollar goes to those punks. AND when's Yahoo's bailout plea coming?


By V3ctorPT on 11/18/2008 3:25:07 AM , Rating: 2
Run biatch run!!


RE: Another victim of the crashing U.S. economy
By rs1 on 11/18/2008 4:34:14 AM , Rating: 5
Yang a victim of the crashing U.S. economy? Hardly. He's the victim of his own pride and incompetent management. He had the opportunity to sell his company at $31 a share, which is about 3x its current price, and was about 1.5x its trading price at the time the offer was made. That would have netted a substantial profit for him, and pretty much all Yahoo shareholders. But oh no, he couldn't allow Microsoft to sully his cherished company, even if it made good business sense to do so. So what did he do? He let the deal fall through, and the value of his company followed suit.

He's not a victim of anything except for his inability to run his business like a business. The economy had nothing to do with this one.


By formulav8 on 11/18/2008 10:10:50 PM , Rating: 2
Your right and GREED is a reason Yahoo is in this position. He was wanting MS to give more money than the company was really worth. The $31/share price was actually pretty fair.

But he probably thought that MS is alittle on the desperate side and would meet his demands for more money. Thus MS backed out and he caused a alot of people to be affected in a negative way, including himself. You can be pretty sure that if possible, he would go back and accept Microsofts offer of $31/share...

Just my opinion on the matter.

Jason


By InvertMe on 11/19/2008 2:21:01 PM , Rating: 3
It's very easy to make comments like this in hindsight. However at the time Yang might have very well thought the gamble in going for more money would pay off and that he would be a super hero to his shareholders.

I don't think he forsaw the drastic tumble in stock price that would soon follow.

While I am thinking he should have sold too (Microsoft's offer seemed too goo to be true) I don't know eveything that was going on behind the scenes. Maybe it really (at the time) was a bad deal in Yahoo's eyes.


By Strunf on 11/18/2008 5:59:26 AM , Rating: 2
Hector Ruiz was overly payed for what ever he was worth... how you explain he made more money than Intel's CEO ?...


By iFX on 11/18/2008 9:33:11 AM , Rating: 2
Are you stupid?

Both these worthless, unethical, greedy managers have taken millions of dollars in bonus money while summarily running their companies into the ground and at the same time laying off thousands of workers who don't happen to get million dollar bonuses.

You're an idiot.


The Force is strong with you, Steve
By Pirks on 11/17/2008 9:33:37 PM , Rating: 2
And you did it without throwing any chairs

Thumbs up

Good work




RE: The Force is strong with you, Steve
By someguy123 on 11/17/2008 9:42:18 PM , Rating: 1
steve?


RE: The Force is strong with you, Steve
By Brandon Hill (blog) on 11/17/2008 9:44:55 PM , Rating: 2
Ballmer.


RE: The Force is strong with you, Steve
By jamesbond007 on 11/17/2008 9:45:58 PM , Rating: 3
Bueller?


By BruceLeet on 11/17/2008 11:24:47 PM , Rating: 1
Jobs

If ya wanna get stupid


YinYang
By isorfir on 11/17/2008 10:52:05 PM , Rating: 5
Hey Jerry, you might want to look here: http://hotjobs.yahoo.com/




By InternetGeek on 11/17/2008 9:52:11 PM , Rating: 2
It's hard to tell if Yahoo can make it. They are not in such a bad condition as GM in their own market. How bad would it be for Yahoo to spin off everything that's not making a buck and work with all the partners to try to raise more money?

In other hand, I don't think Microsoft will ever buy Yahoo again. At least not just the whole company, but only some pieces of it. However it seems to me Microsoft is already hard at work with their own online initiative so I don't think there's too much value for them there.




By epyon96 on 11/17/2008 10:41:28 PM , Rating: 2
Chief Value Destroyer.


Yang
By restrada on 11/18/2008 1:42:31 AM , Rating: 3
All I can say is, it's about time! It took Yang long enough to do this.




Hehe
By wetlegs6 on 11/18/2008 1:01:19 PM , Rating: 3
All I can say is, haha!

He had this coming. He tried to worm his way out of it after the Microsoft deal fell through but, no, he was so dead from that point.




Easy:
By Clauzii on 11/17/2008 10:49:14 PM , Rating: 2
"..and the search for a replacement has begun.."

OK: "Yahoo, we find everything You need!"

Oh, wait...




meh
By MadMan007 on 11/18/2008 12:41:27 AM , Rating: 2
While he probably should have taken the MS deal in obvious hindsight, although I like the 'stay independent' attitude,' and the US JoD obviously put a big detour up in the way of the Google deal so I don't see how that can be blamed upon Yahoo too much, it's not as if Yahoo's stock price plummet is unique or unusual these days. Some companies would be happy to have their stock at mere 5-year lows.




Change is cominng......
By crystal clear on 11/18/2008 8:05:17 AM , Rating: 2
quote:
Yahoo is hunting for a new CEO after Jerry Yang announced plans to step down due to public pressure


The following quotes describes best "Yahoo"....

"You have to stop in order to change direction."


"It is part of the cure to wish to be cured."




Grammar flaw
By 91TTZ on 11/20/2008 2:38:50 PM , Rating: 2
quote:
Yang publicly stated he wished to remain in control of Yahoo, but the company's board faced too much pressure to try and replace him...


"Try to", not "try and".




but
By CvP on 11/18/2008 12:42:46 AM , Rating: 1
quote:
which was his previous job at Yahoo. He will focus on Yahoo's global strategy and will attempt to try and help Yahoo in its most tumultuous time.

he'll be a failure even here.




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