Hey look everybody, Yahoo just appointed a new CEO! Don't worry if you missed it or are otherwise preoccupied to pay attention, there's a good chance you'll get another opportunity to see Yahoo anoint a new chief. With all due respect to Scott Thompson, the former PayPal executive who's now in Yahoo's hot seat, he's Yahoo's fourth CEO in less than five years. How's that for job security?
Given that Jerry Yang has been gone as long as he has, it’s nice that Yahoo’s Board has finally stepped up and named a new CEO. Who’s the new suit that’s going to fill the shoes? Carol Bartz, formerly of Autodesk.
Who is this Carol Bartz, one might ask? Well, according to Roy Bostock, Yahoo’s Chairman, “She is the exact combination of seasoned technology executive and savvy leader that the board was looking for, and we are thrilled to have attracted such a world-class talent to Yahoo. The board is united in its view that her energetic and decisive leadership style, coupled with a proven track record of driving growth, operational excellence and shareholder value, is exactly what Yahoo needs to get back on a path toward achieving its full potential.”
Her main challenge as new CEO will be turning around a struggling media company whose services are used by hundreds of millions of people. Ms. Bartz, we wish you the best of luck and we look forward to seeing what you do with the place!
Yahoo co-founder and chief executive Jerry Yang has spent the better portion of 2008 staving off a takeover attempt by Microsoft that threatened to go hostile, a decision that hasn't always been a popular one with Yahoo shareholders. Nor has it sat well with the 10 percent of employees facing a job cut by the end of the year. Now, just 18 months after stepping into the role of CEO, Yang has announced his pending resignation and will return to his role as Chief Yahoo once a successor is in place.
"All of you know that I have always, and will always, bleed purple," Yang wrote in letter to all Yahoo employees. "I will always do what I think is right for this great company. While this step will be an adjustment for all of us, I know it’s the right one. I look forward to updating you on this process as soon as the board has developments to share, and will continue to do everything I can to make Yahoo! fulfill its full potential."
No front runner for the position of CEO has yet emerged, but Yang did say the board will consider both internal and external candidates. Hired to help in the search is international executive search firm Heidrick & Struggles, with the overall effort being led by Roy Bostock, Yahoo's chairman of the board.
Does this change anything in terms of a takeover? Hit the jump and give us your prediction on where Yahoo goes from here.
He once again reminded them that it has been a very challenging year for the company. After enumerating few of the things Yahoo is doing to survive in the “turbulent global advertising climate”, he came straight to job cuts.
Yang told all Yahoos that the company has no other choice but to slash jobs – in order to cut costs, as “compensation expenses are the single largest part of its costs.” He then apprised them of the heart-wrenching fact that 10% of them are going to loose their jobs by year-end.
Yahoo’s CEO Jerry Yang has scored a major victory against corporate raider Carl Icahn ahead of the crucial board election on August 1. Legg Mason’s Bill Miller, who owns a 4.4% stake in the internet company, has vowed his allegiance to Jerry Yang and the current board. Bill Miller’s support is being inferred as a fatal blow for Icahn’s Microsoft-backed proxy war as analysts don’t expect any institutional investors – that hold a stake in Yahoo – to back the boardroom coup.
The only glimmer of hope for Icahn is Gordon Crawford, who controls a substantial 6.5% stake. Gordon has hinted that he can align with Icahn but remains undecided. Yang wants to leave nothing to chance and wants to finalize a deal with AOL before the upcoming board elections, however, the chances of the deal going through ere Aug 1 remain slim.