Ben Schachter, analyst, UBS: “Terry Semel’s departure is a positive in our view, but the negative financial preannouncement will hurt. … While we are pleased to see Yahoo moving to the next stage of leadership, think many investors will wonder why Yahoo declined to add new blood from outside the firm and make a more radical departure from the past. Also, given Yang’s influence in the company all along, we are curious about what Jerry Yang disagreed with regarding past initiatives, as well as what he would like to change going forward. Are there businesses he will shutter? Are there new areas he thinks the company should explore? While the devil is in the details, we think Yang and Decker will need to execute on a vision while hitting financial targets before the stock can turn. … The bottom line is that we would have liked to see a more radical departure from the past, but Yang clearly thinks he can turn this thing around with better execution, strategic vision, and leadership.”
Kim Caughey, analyst, Fort Pitt Capital Group (via Reuters): “The shareholders certainly want management to explore all M&A options and it certainly looks like they are now going to have to do that.”
Charlene Li, analyst, Forrester Research (via CNET News.com): “(Jerry) Yang has got some strong backup, with Sue Decker at president. … The key thing he lacks is strong management experience of a large, complex organization … Semel brought discipline, now they need vision. (Yang) definitely has the credibility to do that. … They had to do something. There was an attitude of ‘anyone but Terry’ at this point.”
Allen Weiner, analyst, Gartner (via IDG News Service): “I always felt that the best CEO for Yahoo already worked there: Jerry Yang. … He is far and away the best choice they could have made.”
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