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In its Friday edition, the Post writes that an independent group of Yahoo board members believes Yahoo CEO Jerry Yang may be letting emotions trump his better judgment and that's why he's opposed to accepting Microsoft's buyout offer.
When it comes to big acquisitions, so much of what gets put forward as informed analysis is likely to be off the mark. But among people familiar with his thinking, Yang's distaste for Microsoft is an open secret.
"Jerry would rather give up his left pinky than see Microsoft wind up running this company," said a former Yahoo employee who knows Yang.
I can understand Yang's reluctance to do this deal. Along with David Filo, he built Yahoo from scratch. Now an increasingly noisy chorus of shareholders is pressuring him to turn over the keys to the "Monkey Boy" and his cohorts. That has Yahoo scrambling to come up with alternatives. One day Google pops up as the leak du jour, the next day it's News Corp. At this rate, it won't be long before we hear rumors of Warren Buffett sightings.
Would one of those scenarios result in a better denouement? The answer depends on who you're asking.
When I talk with folks who consider themselves in the "pro-Jerry" crowd, I hear Yang described in almost worshipful tones. His people trust him to do the right thing. They love him for his passion and commitment. And even though Yang could have checked out years ago, he earned their loyalty by sticking with it through the good years and the lean. And so it was that when Terry Semel got sent back to La-La Land, Yang agreed to a return engagement as Yahoo's CEO.
Yahoo shareholders can't be equally impressed. Fact is that Yang was involved in horrendous decisions where Yahoo wasted billions on rancid acquisitions. What's more, the extensive turnover in the executive offices--Semel, Tim Koogle, Jeff Mallett, Dan Rosensweig, and Wenda Harris Millard, among others--doesn't inspire confidence that this company knows what it wants to be when it's all grown up.
Corporate turnover in tech-land is a fact of life. I could easily come up with a similar list of top Microsoft executives who subsequently were shown the exits. The big difference being that during the interregnum Microsoft became one of the most successful corporations in the history of American business. A lot of the credit for that goes to Bill Gates. When you tally the last three decades of the technology business, how many co-founders navigated their companies as successfully through so many twists and turns?
I don't want to draw invidious comparisons, but there's little in Yang's track record to suggest he's got the makings of a superstar CEO who could lead Yahoo's revival--especially not at this juncture.
Earlier this month, Millard, who ran sales at Yahoo, used the occasion of an appearance at a media summit to speak frankly about her former employer. She did not mince words.
"Yahoo lost sight of who they are and who their customers are," she said. "Yahoo's perception is that their only competitor is Google. But 95 percent of their revenue comes from advertising--so their competitors are really the broadcast TV networks. They think they're in the search game, when they should really be in the brand advertising game."
"It reduces choice for advertisers," she added. "There would be two Goliaths, down from three. Advertising is a business that is both art and science. The merger focuses unduly on science. With Google-DoubleClick and Yahoo-Microsoft, it is as if the scientific community is taking over advertising. And advertising is not about science."
Who can argue the point? And while Yang may not have been CEO while Yahoo made many of those decisions, he went along for the ride. And that's why the loyalists who "want to give Jerry one more chance" are living in the past. I know Bill Gates. I cover Bill Gates. And Jerry Yang, sad to say, is no Bill Gates.
Biography
Charles Cooper is CNET News.com's executive editor of commentary.
See more CNET content tagged:
Jerry Yang,
Yahoo! Inc.,
Terry Semel,
Bill Gates,
shareholder
It sure looks that way.
He is not running his company into the ground. But there obviously has been some sleeping at the wheel.
Yes, they are not the titans of the search business but still Yahoo has an exceptional brand and is embarking on some very interesting new endeavors.
The new frontier for Yahoo is a back to basics web portal fundamental but with a new Social Networking attitude.
Social Networking and Social Networking Devices are the next wave, witness LiMO, Android, OpenMako, mobile Firefox, Opera Mobile, the sale of Trolltech, etc. and Yahoo is positioned very well to capitalize and compete on this.
Microsoft became one of the most successful corporations in
the history of American business. A lot of the credit for that
goes to Bill Gates. ..."
Couple things here. First of all people give Bill Gates and
Microsoft way too much credit for the wealth that was brought
to them by one lucky decision on Gates' part and one horribly
bad decision on IBM's part. Microsoft is the world's greatest
industrial accident. It wasn't planned. Since then the company
has rested on the glorious success of DOS and largely achieved
lasting mediocrity in every other respect. And if you want to talk
about bad acquisitions... well, Microsoft has had its share.
The only possible way for Microsoft to make anything succeed is
if they can somehow latch it onto Windows and basically force
people to buy it when they buy Windows. Microsoft will never be
a big player in the Web space because they just don't have the
"cool" necessary. Maybe if they toss out Balmer and the rest of
the upper management dead weight the pilot light might come
on again.
As far as MS buying Yahoo, I can't think of another time when
the thought of billions of dollars passing hands generated such
a yawn. Who cares? Yahoo has slipped into mediocrity and MS is
just re-arranging the deck chairs on the titanic. Whatever
coolness Yahoo has left will fade if Microsoft buys it.
Mod-down cnet for journalistic integrity.
Yahoo + Microsoft would be just like another failed AOL/Time Warner or AT&T/MediaOne/TCI merger all over again...
Yahoo + Microsoft would be just like another failed AOL/Time Warner or AT&T/MediaOne/TCI merger all over again...
Let's face it. Microsoft copied "some would say stole" everybody ( Including Yahoo), and if that was enough they wouldn't be shelling out money AND Going to debt just because they "respect" Yahoo.
I love this.
learn to read and understand.
At that time, I wrote a comment to point out that it is the team and the corporate culture
that makes the different, not an individual
and this time, Eric may have the right team.
Now, giving time and the right team, Jerry can do the same as Eric did. So did Bill.
Early in Yahoo!'s growth, Yang knew quite well that he was not suited to be CEO - or even President - which is why Koogle and Mallett came in.
However, Yang has been on the frontlines for about 15 years now, so his experience is quite frankly unsurpassed in the industry for leading Yahoo!
At the same time, a fresh perspective is often what is needed - but how far did that get Terry Semel far.
As we all know, any given CEO can or cannot turn around any given company at any given time - there are far more factors involved. The only way to know is to roll the dice.
Is Yang the right person to lead Yahoo! now? I don't think anyone knows, but I do know he is perfectly qualified and at least one outside superstar ceo has failed miserably at the same helm.
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by san2222
June 24, 2008 6:19 AM PDT
- Res Mr. Gates
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See all 21 Comments >>************Who is next CEO****************
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