After facing shareholders, Yang must fulfill promises

Yahoo managers will get an earful from angry shareholders Friday, as the company gets ready to fulfill many promises.

Yahoo CEO Jerry Yang will face a tough crowd at Friday's shareholders meeting, but the expected tongue-lashing is likely the least of his worries as he stares at the towering list of promises he has made and must fulfill.

Since replacing former CEO Terry Semel in mid-2007, Yang has been assuring employees, partners, external developers, publishers, advertisers and online-service consumers that he has a foolproof plan to get Yahoo back on track financially and technologically.

For shareholders, the problem with Yang's rhetoric is that when he took over from Semel, Yahoo's stock price was in the US$27 to $28 range. On Thursday, it closed at $19.89, far from the $33 per share Microsoft offered before negotiations collapsed in early May, and very close to the $19.18 price on Jan. 31, the day prior to the bid's announcement.

"There is a lot of anger and discontent among shareholders. It will be lively tomorrow," said IDC analyst Karsten Weide in a phone interview.

Activist investor Eric Jackson, president of Ironfire Capital, plans to attend and get vocal at San Jose's Fairmont Hotel, and is encouraging others to do the same. "[The meeting] will be an opportunity for us to speak up and make our voices heard. If you're in the Bay Area, I encourage you to come out ... Hopefully, we'll have a lively set of questions posed to the Yahoo board in a true direct fashion," Jackson wrote on his blog Monday.

While Friday's meeting will give shareholders a soapbox to vent frustrations, the event is also of significance to Yahoo end-users, advertisers, publishers, partners and developers who are trusting that Yang and his team will deliver the promised goods.

With Microsoft no longer circling the waters and having appeased Carl Icahn -- who wanted to kick out the entire board and boot Yang from the CEO throne -- Yahoo's management now has no excuse for the company's underperformance.

After all, at Friday's meeting, despite the likely sound and fury from the floor, the current board will retain a solid majority -- eight members -- as part of an agreement that grants seats to Icahn and two of his candidates. This leaves Yang and his team on much more solid job-security ground.

Or maybe not. Industry analyst Rob Enderle of Enderle Group wouldn't be surprised if top management changes are announced at the meeting or shortly afterward, involving either the replacement of Yang as CEO or the addition of a new executive in a prominent role, possibly former AOL CEO Jonathan Miller, a candidate for an Icahn seat.

The mere fact that Icahn will have a say in Yahoo's operations assures changes will be made to current plans and strategies, so people and organizations tied to Yahoo services would do well to pay attention to what transpires at the meeting, especially discussions about possibly changed plans and strategies, Enderle said.

After Microsoft made its bid, Yahoo went into a hyperactive mode with product and strategy announcements, seemingly to prove that it was worth more than Microsoft was willing to pay and also able to survive independently. It's likely that that list of projects will be pared down, according to Enderle. "I don't think they'll be able to execute on all of them," he said.

Probably the most ambitious project is Yahoo Open Strategy (Y OS), which promises end-users and developers alike a major revamping of how they will respectively use and develop applications for Yahoo online services. It's generally agreed that if the Y OS vision is fully realized, it could give Yahoo a significant and long-needed boost in key areas like search and social networking.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

Computerworld
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

This Holiday Season, protect yourself and your loved ones with the best. Buy now for Holiday Savings!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?