Yahoo announced on Monday that its chief executive Jerry Yang would step down from that role when the company decides on a replacement. Mr. Yang is a co-founder of online mogul Yahoo and had assumed control of the company from Terry Semel approximately a year and a half ago.
In a statement, Yahoo said that Mr. Yang would return to his earlier role as “Chief Yahoo”, a corporate visionary role. Mr. Yang will remain on the Yahoo board. Yahoo said it would look for potential replacements inside and outside the company. Rumored potential candidates include Susan Decker, Yahoo’s current president; Dan Rosenweig, the former chief operating officer, and Jonathan Miller, the former chief executive of AOL.
Recent months have less than ideal for Yahoo, with Mr. Yang rejecting a $47.5 billion takeover offer from Microsoft and falling short on a proposed advertising deal with Google. The deal with Microsoft was worth $33 a share-that is over three times Yahoo’s closing price of $10.63 on Monday. After hours trading witnessed the stock rise more than 4 percent.
While Mr. Yang has been with Yahoo since the company was a mere directory of websites, many questioned his abilities to succeed as chief executive, especially upon analyzing his decisions since taking the place of Terry Semel just last year. Now that Mr. Yang is stepping down, there are surely rumors of a new round of talks with Microsoft.
Regulators squashed the proposed advertising partnership between Yahoo and Google, and some analysts and investors have suggested that without that deal, Yahoo will be forced to either rekindle talks with Microsoft or a potential merger with AOL. Blue Interactive Agency, your interactive marketing source in Fort Lauderdale, Florida will continue to follow this story.