SAN FRANCISCO — Read full article here. -One of the first questions that Jerry Yang and his top lieutenants pondered after he became chief executive of Yahoo last summer was whether the company could remain independent. They quickly answered yes.
But Mr. Yang, who founded Yahoo along with David Filo in 1995, had a harder time coming up with convincing answers for many of the more complex questions facing the company. How exactly would an independent Yahoo sharpen its focus, shed marginal projects and become a stronger competitor to Google, the runaway leader in online search and advertising?
Mr. Yang, a cerebral, highly analytic executive who, by all accounts, cares deeply about the company he helped build and its workers, appears to have run out of time to answer those questions. A $44.6 billion bid from Microsoft is once again forcing Mr. Yang and his board to consider the viability of Yahoo as an independent company.
This time, Mr. Yang, 39, faces enormous pressure as he decides whether to try to rescue the company from the clutches of Microsoft, or accept the bid and watch Yahoo become part of Microsoft’s arsenal in its no-holds-barred brawl with Google.
Some analysts and several current and former Yahoo executives are, meanwhile, wondering whether things would be different had Mr. Yang been quicker at making some of the tough choices that Yahoo faced.
“He came on board, announced a 100-day strategic review and promised there would be no sacred cows,” said Mark Mahaney, an analyst with Citigroup. “One hundred days went by, and no cows were slaughtered.”
It took until last week, more than six months into Mr. Yang’s tenure, for him to announce that Yahoo would cut 1,000 employees. At the same time, however, Mr. Yang warned investors that he had decided to make larger-than-expected investments in the business. The announcement sent the company’s shares down to their lowest level in more than three years, precipitating Microsoft’s bid.
“Why couldn’t those things be hashed out in the first 100 days?” Mr. Mahaney asked.
Yahoo declined to make Mr. Yang available for an interview. But other Yahoo executives strongly defended his short tenure, saying Mr. Yang had quickly set priorities and laid out a precise strategy for making Yahoo more competitive.
“We have moved quickly and aggressively to implement our strategy,” said Hilary Schneider, an executive vice president in charge of Yahoo’s network of advertisers and publishers.
Mr. Yang, a cerebral, highly analytic executive who, by all accounts, cares deeply about the company he helped build and its workers, appears to have run out of time to answer those questions. A $44.6 billion bid from Microsoft is once again forcing Mr. Yang and his board to consider the viability of Yahoo as an independent company.
This time, Mr. Yang, 39, faces enormous pressure as he decides whether to try to rescue the company from the clutches of Microsoft, or accept the bid and watch Yahoo become part of Microsoft’s arsenal in its no-holds-barred brawl with Google.
Some analysts and several current and former Yahoo executives are, meanwhile, wondering whether things would be different had Mr. Yang been quicker at making some of the tough choices that Yahoo faced.
“He came on board, announced a 100-day strategic review and promised there would be no sacred cows,” said Mark Mahaney, an analyst with Citigroup. “One hundred days went by, and no cows were slaughtered.”
It took until last week, more than six months into Mr. Yang’s tenure, for him to announce that Yahoo would cut 1,000 employees. At the same time, however, Mr. Yang warned investors that he had decided to make larger-than-expected investments in the business. The announcement sent the company’s shares down to their lowest level in more than three years, precipitating Microsoft’s bid.
“Why couldn’t those things be hashed out in the first 100 days?” Mr. Mahaney asked.
Yahoo declined to make Mr. Yang available for an interview. But other Yahoo executives strongly defended his short tenure, saying Mr. Yang had quickly set priorities and laid out a precise strategy for making Yahoo more competitive.
“We have moved quickly and aggressively to implement our strategy,” said Hilary Schneider, an executive vice president in charge of Yahoo’s network of advertisers and publishers.
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