INSTANT VIEW: Yahoo's Yang to step down as CEO
SAN FRANCISCO (Reuters) - Jerry Yang, the chief executive of Yahoo Inc, will step down from his role as soon as the board finds a replacement, the beleaguered Internet company said on Monday, sending shares up.
COMMENTARY:
"Clearly there's been a shift in the power structure and most likely the board is asserting power over management. Probably what it's indicating is that Yahoo's performance is continuing to deteriorate, the board is becoming frustrated and wants to look into more options. It makes it more likely now that there will be a deal with Microsoft...
"If Microsoft hasn't asked for discussions then probably the board wants to have discussions with Microsoft and Jerry wouldn't be the ideal person to have in that process. Either the deal is provoked or they want to make a deal with Microsoft."
DOUGLAS CHRISTOPHER, ANALYST, CROWELL WEEDON
"You've got a company that is still pretty clean, doesn't have any debt, been generating strong cash, despite the lull in earnings. The question is what's that worth now?"
"If Microsoft liked it in the 30s, they've got to love it at this price."
"At this stage maybe the best CEO is Microsoft."
MARTIN PYYKKONEN - WUNDERLICH SECURITIES
"Jerry was miscast in this CEO role as far as running Yahoo. At this point he's much better off running strategy or technology behind the scenes...
"Because he's stepping down doesn't mean the company is going to magically be wonderful again.
"Away from deals with Microsoft and Google, this company really needs to get back to basics, that is being a leader in online media and recapturing growth. It's looking more and more like a traditional media company which it shouldn't be at this point."
JEFF EMBERSITS, CIO, SHAREHOLDER VALUE MANAGEMENT
"I've been recommending them as a short. They should have taken the Microsoft deal, and Microsoft probably feels lucky that they didn't... I don't see anything there worth buying.
"For me it's just a business in trouble.
"They're changing the CEO but he's staying on board as Chief Yahoo? If he didn't own so many shares he'd probably be out cold."
ROSS SANDLER, ANALYST RBC, CAPITAL MARKETS
"I think it's going to be a big positive for the shares...
"The company is in desperate need of change and this is clearly one way to do it.
"I'm guessing there will be increased speculation that's going to happen (Microsoft returning to buy Yahoo) and the mere notion that Microsoft is coming back is enough to get the stock moving higher. This does potentially play into Microsoft's hands. Jerry was the roadblock for the last deal getting done."
