Yahoo boss Yang resigns
Jerry Yang, head of the crisis-hit internet company Yahoo, has announced his resignation. The 40-year old co-founder is reaping the consequences of the huge pressure following this summer’s failed takeover by Microsoft. Yang’s resignation has immediately fuelled new takeover speculations. Yahoo is fighting falling profits and is in the process of making around 10 percent of its workforce redundant.
Yang will remain in office until a successor is found and will assist the board in the search for that successor. Both internal and external candidates will be considered. Yang is expected to continue to play a significant role at Yahoo and will remain on the board.
Yang was one of the co-founders of Yahoo in 1994 and took up the reins again in June of last year to try to bring the company back to profitability. The company is suffering in particular from competition with Google.
A few months ago, Microsoft had tried to buy Yahoo for more than 40 billion dollars, in order to break internet company Google's dominance in the booming online search advertising business. Yang repeatedly rejected Microsoft's overtures, with the result that Microsoft eventually withdrew the offer. Yahoo planned instead to enter into an alliance with Google. A few weeks ago, however, Google dropped the plans as a result of concerns from competition authorities and protests from advertising customers.
Many shareholders, such as the combative Carl Icahn, strongly criticised Yang's approach. Many have lost large sums as a result of the rejection of Microsoft's offer, with the share price since suffering heavy losses. Microsoft's final offer amounted to $33 per Yahoo share – at close of business on Monday, they were worth just $10.63.
Microsoft has recently repeatedly officially stated that it will not be making a new offer. Nonetheless, statements from Yang and Microsoft boss Steve Ballmer have fueled repeated speculation. According to reports, Yahoo has also held repeated talks with internet portal AOL, part of Time-Warner, on a possible collaboration. (dpa)