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Angry board members, shareholders forced Yang to backpedal

WorriedYang.jpgSuddenly, Yahoo CEO Jerry Yang is telling reporters he's "willing to listen" to Microsoft offers below $37 a share. Why the change of heart? Because Yang had a bad day Monday. Major Yahoo shareholders slammed him in the press. Employees were angry and the Yahoo board took heat, too. "I'm extremely disappointed in Jerry Yang," Capital Research Global Investors portfolio manager Gordon Crawford told the Wall Street Journal. "I think he overplayed a weak hand." Crawford also directed his ire at Yahoo's board of directors: "The independent directors were not responsive to the needs of independent shareholders." A very tenuous source tells us at least one Yahoo board member got the message and was heard venting over the phone about Yang's performance, saying, "I'm done with this ego trip shit, he's out."

5:34 AM on Tue May 6 2008
By Nicholas Carlson
2,492 views
10 comments

Comments

  • He's a very successful and very wealthy person that deserves the respect of everyone in the industry but he's not qualified to run Yahoo at this time because he's clearly out of touch with the product vision necessary to save yahoo. Sue Decker should be fire on the spot, too.

  • This "ego trip shit" is what I've been talking about from the day the offer went out.

    It'd be hard to put a lowball figure on the value of yahoo, given even the most optimistic projections of their relevance in 5 to 10 years, but the people running their company were more concerned with pride than the shareholders; so be it.

  • Image of sample032 sample032 at 08:08 AM on 05/06/08 *

    @sggrf: I give him the same respect I give other valleywag regulars.

    Speaking of which, remember Semel? If Yang's proven anything about Yahoo, it's that Semel wasn't the problem; Semel would have sold.

  • Image of sample032 sample032 at 08:11 AM on 05/06/08 *

    @Rick: To quote myself,

    "'I am not even sure if Yahoo cares about its shareholders because they didn't show much regard for shareholders' best interests in this process.'

    And that's why $20 is still too high."
    [valleywag.com]

  • Image of WagCurious WagCurious at 08:21 AM on 05/06/08 *

    I don't think Jerry ever thought he'd be around for another quarterly earnings report. Thus all the smoke and mirrors with the Alibaba sale, the Google ad deal, the crazy projections. He and his staff know that when they actually have to show what kind of job they have been doing next quarter they will be out.

  • The pattern to me is very clear.. Yahoo leaders have zero negotiation skills when it comes to the really important deals. If he wanted to keep MS in talks, Yang could have kept Ballmer at the table. He chose to let him walk. Yang doesn't want to sell period. Now that he's in huge trouble for it, he's covering for his willingness to let Ballmer walk, by saying he's willing to listen to a counter offer.

  • For people who believed Jerry would be able to change Y! are in dreams. Jerry and Filo had always been around the campus doing their thing, working on projects all the time while Semel was in charge. Don't u think they'd have done what they can, what's best for the company instead of waiting for the CEO title baton and then do the right thing? I argue that it's the same Jerry for the last 10 years as he is today. If he ever stepped outside of the company like Steve Jobs did, that'd make him the savior to come back with a vision. But the guy has been part of the furniture and never stepped outside the box. Think about that.

  • Clearly mister Stanford wunderkind has reached the nadir of his career and will now slowly fade to obscurity in Cupertino or whatever crappy southbay town he's shacked up in. Maybe in a decade or so it will sink into his thick skull that the internet doesn't revolve around him anymore, and likely never did.

  • i don't get it, why is it that these harvard and stanford grads always manage to fook things up for the common man?

  • @dingdongditch: Ideals > Business Sense. Just a guess.

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