Terry Semel Leaves Yahoo.

Microsoft Takeover Looms Large as The Panama Project Continues to Implode.

Jerry Yang Returns as Yahoo CEO - Susan Decker Named President.

Yahoo! announced that Terry Semel will resign as CEO and pass the torch back to co-founder Jerry Yang.

Yang an original co-founder of Yahoo will remain on Yahoo's Board. Susan Decker, Yahoo's former head of Advertising has been named President. The changes culminate a dramatic sequence of events at Yahoo as the Panama Project continues to sink the ship taking many senior level managers and executives with it.

The Chief Technology Officer at Yahoo had resigned a couple weeks earlier and Semel just completed annual shareholder meetings that left the majority screaming for his resination.
Yahoo has faced mounting internal and external criticism in recent months as the Panama search project continued to flounder.

Panama has failed to increase revenues and is not helping Yahoo boost its shrinking share of the keyword search pie. Yahoo has reported poor results to date in 2007 with no end to the downward profit trend in sight.

Yang, 38, founded the company in 1994 with David Filo and serves on the board of directors, in addition to holding the title of "Chief Yahoo" overseeing the company's strategy and technological vision.

In a conference call with analysts held Monday afternoon, the company said it is seeing slower growth in display advertising --which include banner ads, website design and videos -- but better-than-expected performance from its recently re-tooled search advertising business.

Proposals opposed by the board that aimed to tie executive pay to competitive performance and challenge the company's human rights policies in China were defeated.

CNBC is reporting that Yahoo may need to explore strategic alternatives. Micorsoft has been knocking on the door for several months looking to join forces and give Google a tougher fight in keyword search.

"Yahoo is in a tough position of weakness so I think there are some people circling around it," Jim Friedland, an Internet analyst with Cowen and Co. "Given the weakness Yahoo has been experiencing, I think now is the time those talks become more real."

However, the analyst noted that forging a strategic deal with the likes of News Corp., Time Warner or Microsoft may not be in Yahoo's best interests.

Addressing such speculation, Jerry Yang said Monday the company's board believes Yahoo should remain independent.

For a full update visit - The Jerry Yang Blog


Some highlights from Jerry include:

Yahoo! has an incredibly bright future and I make this move with deep conviction and enthusiasm. I’ve partnered closely with our executive teams for 12 years to steer our strategy and direction and today I’m ready for this challenge.

Terry has given Yahoo! six of its best years. He delivered great value to our users, advertisers and shareholders. Terry refocused the company on key strategic priorities, and in so doing, helped Yahoo! increase our revenues nearly nine-fold from $717 million in 2001 to $6.4 billion in 2006; boost our operating income from a loss in 2001 to nearly $1 billion last year; and create more than $30 billion in shareholder value during his tenure. He helped grow our audience from 170 million to more than 500 million users globally, and he oversaw the expansion of our base of talented employees from 3,500 to nearly 12,000.

I will always be grateful for the incredible achievements under his leadership — and for his mentorship and friendship. We’ll continue to benefit from his support and guidance as he transitions to his role as our Chairman.

I also couldn’t ask for a better partner in Sue Decker as our new president. In addition to knowing this company inside and out, Sue has incredible talents, leadership abilities, a fierce focus on winning, and intense dedication to this company and its people. I look forward to teaming more closely with her as we pursue our joint vision.

What is the vision of Yahoo?

A Yahoo! that executes with speed, clarity and discipline.

A Yahoo! that increases its focus on differentiating its products and investing in creativity and innovation.

A Yahoo! that better monetizes its audience.

A Yahoo! whose great talent is galvanized to address its challenges.

And a Yahoo! that is better focused on what’s important to its users, customers, and employees.

The past year has obviously not been an easy one for us. But we’ve taken important steps to address the challenges we face, and we’re starting to realize some of the benefits – especially with the successful launch of Panama, which continues to receive positive feedback from advertisers and is exceeding our expectations.

By the way, that’s directly attributable to the operational excellent mentality Terry has instilled and is a clear sign one of his most critical initiatives is succeeding.

We have incredible assets. This company has massive potential, drive, determination and skills, and we won’t be satisfied until the external perception of Yahoo! accurately reflects that reality.

I have absolute conviction about Yahoo!’s potential for long-term success as an Internet leader.
Yahoo! is a company that started with a vision and a dream and, make no mistake, that dream is very much alive.

I’m committed to doing whatever it takes to transform Yahoo! into an even greater success in the future.

The time for me is right.

The time is now.

The Internet is still young, the opportunities ahead are tremendous, and I’m ready to rally our nearly 12,000 Yahoos around the world to help seize the opportunities.

Go Yahoo!

Jerry Yang
CEO and Chief Yahoo

Yahoo's Chief Technology Officer Resigns ... Jerry Yang Returns !

Yahoo Inc.'s chief technology officer is resigning after nearly a decade on the job, creating a management void as the Internet icon tries to mine more profits from a recent upgrade to its system for delivering online ads.

Farzad Nazem's plans to leave the Sunnyvale-based company were disclosed Wednesday in a Securities and Exchange Commission filing and a posting on Yahoo's Web site.

The resignation becomes effective June 8, 2007, only six months after Yahoo named Nazem head of the company's newly created technology group as part of a management shake up. He had already been Yahoo's chief technology officer since April 1998, two years after he first joined the company as senior vice president of product development.

While Yahoo searches for Nazem's replacement, company co-founder Jerry Yang will return to daily tasks and oversee the technology group as interim "executive sponsor." Fellow co-founder David Filo also will continue his focus on technology, the company said in statement.

In the posting on Yahoo's Web site, Nazem, 45, said he simply wants to retire. "After spending the last 26 years in this fast-paced technology industry, I've finally decided it's time to slow down," wrote Nazem, who also worked at business software maker Oracle Corp. before joining Yahoo.

Nazem's departure comes at a pivotal time for Yahoo. After suffering an 11 percent drop in its first-quarter profit, Yahoo is banking on long-awaited improvements to its pay per click advertising platform to boost its fortunes during the second half of this year.

In the Web posting, Nazem said he delayed his retirement until the new advertising formula - known as the "Yahoo Panama" project - was completed and he felt confident that his mission had been accomplished.

"With all this in place now, I know I'm leaving a strong, dedicated, and focused organization that is ready to define the next wave of the Internet revolution," Nazem wrote.

Yahoo parted ways with another of its top executives, former Chief Operating Officer Dan Rosensweig, at the close of March, 2007. Rosensweig left as part of the management shake up announced in late 2006. Yahoo is still looking for a new executive to oversee the "audience" and virtual tour entertainment group that was formed as part of that reorganization.

Nazem will walk away from Yahoo as a wealthy man, having made millions by exercising the stock options that he accumulated during his tenure. In the last four years alone, Nazem has realized $213 million in gains by exercising some of his stock options, according to SEC filings. Under his separation agreement, Nazem will retain the rights to another 2.97 million stock options with exercise prices ranging between $20.58 and $34.75 per share as long he adheres to certain restrictions, including a three-year prohibition against taking a job with Yahoo rivals Google Inc. or Microsoft Corp.

Yahoo also will pay Nazem the balance of his $500,000 salary and accelerate the vesting rights of his restricted stock in the company, according to SEC documents. Most of Nazem's stock options are currently worthless because Yahoo's market value has sagged since the end of 2005. Yahoo shares dipped 20 cents after the disclosure of Nazem's resignation.