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Jerry Yang, the chief executive of Yahoo, will step down from his role as soon as the board finds a replacement, the Internet company said on Monday and its shares rose 4 percent.
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Paul Sakuma / AP |
Under Yang, Yahoo talks for an acquisition by Microsoft Corp broke down, rival Google [GOOG
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] pulled out of a deal to sell some ads on Yahoo, and the company's shares have withered as it tried to find its way amid tough competition and a swooning global economy.
"The company is in desperate need of change and this is clearly one way to do it," said Ross Sandler, an analyst at RBC Capital Markets.
Sandler said he expects the shares to move higher as investors speculate that Microsoft might make another play for the company, with Yang gone.
"Jerry was the roadblock for the last deal getting done," he said.
Yahoo [YHOO
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] shares rose to $11.10 in after-hours trading from their Nasdaq close of $10.63.
The shares are down nearly 65 percent from the year's high of $30.25, reached in February, two weeks after Microsoft made its offer public.
Microsoft [MSFT
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] withdrew its $47.5 billion buyout offer in May.
Yahoo co-founder Yang took on the CEO role in June 2007 in an effort to turn the company around. He will return to his former role as Chief Yahoo once a successor has been found.
"From founding this company to guiding its growth into a trusted global brand that is indispensable to millions of people, I have always sought to do what is best for our franchise," Yang said in a statement.
For Investors
Yahoo has hired the executive search firm of Heidrick & Struggles to look for both internal and external candidates.
In an e-mail sent to employees, a copy of which was obtained by Reuters, Yang said it was a joint decision by him and Yahoo's board.
Yahoo Chairman Roy Bostock is leading the effort to find a replacement, Yang said in the memo. Yang said he will continue to serve as a director.
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