Yang Exit Would Show Yahoo Is Serious About a Deal

Yahoo! Inc. (YHOO) was quick to shoot down unsubstantiated rumors that CEO Jerry Yang was stepping down on Wednesday. It wasn't the first time such reports have cropped up, and it probably won't be the last.

While we'll take Yahoo!'s word, for now, that Yang has no intention of resigning, it's certainly not out of the realm of possibility that the company's co-founder could choose to abandon his post. Within the next couple of weeks, Yahoo! should have a pretty good idea how it's doing in its proxy fight with activist investor Carl Icahn.

If the Internet company is in real jeopardy of losing, Yang could decide to fall on his browser in hopes of allaying shareholder anger at the company over the derailed deal talks with Microsoft  Corp. (MSFT) and taking some of the sting out of Icahn's campaign. Also, taking Yang out the equation would send a message that Yahoo! is serious about at least entertaining a deal, since he's been perceived as a major obstacle to a transaction.

To that end, All Things Digital's Kara Swisher is reporting that Icahn is trying to enlist former AOL head Jon Miller or Fox Interactive Media executive Ross Levinsohn, both partners at venture firm Velocity Interactive Group, to take the CEO post at Yahoo!.

Comments

[BottomFeeder]

Yang has never been qualified to be CEO. He should step down now. He is going to get fired by Icahn and Co.

[yahooshareholder]

In a perfect world yahoo wouldn't have done everything it has to screw up a good offer from Microsoft, and also Microsoft should have just offered 33 a share a lot earlier. Now if there is a deal the google transaction is going to cost 250 million to get out of it, provided lobbying doesn't shut it down because of antitrust issues. There are consequences and Yang should go, but more than that. In a perfect world the following should happen to make this deal:

1) It was a good step of the current board to say they are open to discussions - bad that Yang hasn't made statements that he is open to a deal - very bad. Yang needs to make a press release that he will support an offer of $33 a share.
2) The current board offers 4 board seats to Icahn to withdraw his proxy bid. Icahn gets one, and he gets to handpick the other three. Cuban is business savy to say the least.
3) Yang announces that he will step down as CEO if Icahn accepts the 4 board seats. Yang keeps his board seat - he did help found the company after all.
4) Microsoft announces that if yahoo gives Icahn 4 board seats, they will offer 33 a share to the new board (which is more than the previous offer given the google deal tie ups).

Perhaps it is wishful thinking, but aside from a merger it is going to take a long, long time for yahoo to trade at $33 a share.

[AmesTiedeman]

YHOO should take $35.00 and MSFT should give it.

[Carlos Bazan]

While Jerry Yang might not have been the best CEO YHOO has had, he is the CEO, and YHOO is a company that should be able to manage itself. If Yang is fired or Yagn quits, it must ne a decision made from within the company, be it through its shareholders, through Yang himself or through the BOD, but YHOO should not decide on its CEO based on or pressured by MSFT or any other company.