Losing Yahoo’s CEO Causes Stocks to Rise
Tuesday was an exciting day for Yahoo. Not only did they find out their CEO would be stepping down from his position, stock prices rose and negotiations could be back on with Microsoft – busy day even for a conglomerate like Yahoo!
The New York Times reports the split for CEO Jerry Yang and Yahoo to be mutual. Roy J. Bostock, Yahoo’s chairman commented, “Jerry and the board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new C.E.O who can take the company to the net level.” Although Yang is resigning from his chief position, he will continue to hold his role on the board as “chief Yahoo”. Yang also agreed to remain as CEO until Yahoo finds a replacement, a process he will be involved in.
Stockholders must have agreed with Yang and Yahoo that now was a good time for a new CEO because stock prices rose 7% on Tuesday after the announcement Monday evening.
And finally, remember a few weeks ago when Microsoft and Yahoo were in negotiations for Microsoft to buy Yahoo, Jerry Yang was a primary player who stood in the way of that deal. Now that he will be out of the office in the near future, things look up for Microsoft to acquire the search engine giant.
By leeann