Yahoo Changes Executives Over Pressure From Investors
For Yahoo the past few years have been a straight down turn and accepting the situation wasn’t easy. What is seems to have been a “once upon a time” case, Yahoo took a serious fall, coming down fast from the height of Internet royalty. Now, the company struggles to at least stop the revenue leak and keep investors. The latest move is a change of its executives over pressure from investors.
After failing to keep the company among the royal heads of the Internet industry, losing revenue and clients, allowing Facebook and Google to take their share of the market and failing the deal with Microsoft, the board of Yahoo executives is being overhauled. It took four years for investors to finally step in and demand a decisive action and a new strategy to recover the loss.
Yahoo decided to replace nearly half of its directors, based on Yahoo’s chairman letter to shareholders. Roy J. Bostock, Yahoo chairman, told shareholders neither he nor the company’s three other longest term directors would stand for re-election. He added that the board has already elected two new directors, the technology executives Maynard Webb Jr. and Alfred Amoroso. The executives’ overhaul comes only one month after Yahoo co-founder Jerry Yang resigned.
Bostock’s letter reads: “We have engaged with potential investors and reviewed proposals concerning an equity investment in the company”, without having any proposals, yet, that “have been deemed by the committee to be attractive to our shareholders”.
Yahoo’s chairman also explained the company is “in active discussions” with “partners in Asia regarding the possibility of restructuring” its holdings in Alibaba Group and Yahoo Japan. He drew attention over the fact that “the complexity and unique nature of these transactions is significant”.
Bostock will remain chairman for the next few months, until the company has its annual meeting. A person familiar with the matter told Reuters Yahoo’s new board will decide on a chairman at the appropriate time.
A shareholder told Reuters that Bostock’s departure was “monstrously overdue” and pointed out that “the changes to the board would not necessarily accelerate the deal making process or bolster his confidence in the company”.