Jerry Yang to Buy Yahoo; Top Shareholders Set to Fire Yahoo! Board of Directors

While Yahoo’s former Chief Executive Carol Bartz who didn’t really deserve the post and had to be ousted, there are a lot of speculations that are cooking up all over the web. A U.S. based business/internet news blog Business Insider noted a rumor that Yahoo’s co-founder and one-time CEO is planning to buy the company – most probably by acquiring 50 percent of the shares, and take control over it, again.

However, Chairman Toy Bostock isn’t really pleased with it, and doesn’t want Yang to take control over the company. Perhaps a lot many people would rather not want to see Yang back in action again.

Jerry Yang

The only reason why Yang could possibly be interested in buying Yahoo is because the company’s shares shot up after the departure of Bartz. Yang currently holds 3.63 percent of Yahoo’s share, while his fellow co-founder, David Filo, owns 5.80 percent.

However, one of Yahoo’s top shareholders Third Point, which owns nearly 5.1 percent of the company said in a letter to Chairman Roy Bostock, demanding to sweep changes in both the Board of Directors and the Company leadership. The letter indicates that the current board has made inappropriate decisions, one of which stated that the board was quite reckless to hire Carol Bartz as Yahoo’s CEO, who
Yahoo literally lacked experience in advertising and Web 2.0

Here’s a quote from the letter –

It is time for new leadership at Yahoo.   Yahoo’s investors, employees, clients and users deserve it.     We look forward to having what is great about Yahoo make headlines, encouraged and communicated by new CEO and Board leaders.

The letter also states that Jerry Yang and the board “made a gross error” for rejecting the offer of $33 a share from Microsoft in May  2008, which is depressing and frustrating at Yahoo’s current stock price of 13.61 per share. CEO of Third Point Daniel S. Loeb, in his letter has mentioned the most valid points, and I’m sure the other stakeholders are likely to agree with it.

Although Yang has no real chances to own the company, shareholders would definitely get a new set of team on board, and help generate enough revenue and increase its share price.

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