Semel Resignation a Harbinger of Bigger Yahoo Shakedown

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Terry Semel’s resignation was a rather anti-climactic conclusion to a tumultuous tenure, but the Yahoo shakedown is likely to continue. It’s hard to imagine the new Jerry Yang-Sue Decker team finding a second wind in the pretty-much-lost-already race with Google and many are predicting a sale or merger with Microsoft or MySpace in the near future. Paul Kedrosky of the University of California San Diego said, “My bet: Yahoo won’t be an independent company in 12 months.”
Rather than substantial overhaul, Semel’s resignation is an effort to temporarily assuage shareholder discontent. It comes just a week after Eric Jackson’s grassroots campaign to oust Semel along with the Yahoo compensation committee received disproportionate media attention in anticipation of the annual shareholders meeting.
It’s likely that Jerry Yang’s appointment as CEO will be interim-only . The Wall Street Journal quoted an unnamed Yahoo insider saying that the board still intends to conduct a search for a new CEO, with Sue Decker on the inside track.
Amid Missteps, Yahoo's Semel Resigns as CEO [Wall Street Journal]
Yahoo’s Chief Resigns, and a Founder Takes Over [New York Times]

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