Yahoo shares have now lost 60% of their value since Microsoft launched a $44.5 billion takeover bid for the ailing Web giant. Investors found temporary relief in November when the stock bounced at the
news that Jerry Yang would be stepping down as Yahoo CEO. But gloom once again returned as the reality set in that finding a replacement for Yang may be even more difficult than getting him to
resign.
Bloomberg suggests that Yang's successor may be uncomfortable with the fact that Yang has not completely left the company. In fact, he remains "Chief Yahoo" with an office down the
hall from whoever succeeds him as Yahoo CEO. Heath Terry, an analyst at FBR Capital Markets Corp., thinks this may cause yet more trouble at Yahoo. "In the minds of Jerry, most of the board and
employees, this is still Jerry's company."
What, exactly, does a "Chief Yahoo" do? According to the company's blog, Yang will focus on global strategy, products and technology, and he will
remain a board member. Allen Geller, managing director of Raines International, a New York-based executive headhunting firm, warns that the possibility for interference increases when a top manager
like Yang stays on and is also a founder. News Corp. President Peter Chernin and former AOL CEO Jonathan Miller are among potential candidates to replace Yang, according to Laura Martin, an analyst
with Soleil Securities Corp. in New York.
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