Thursday, June 4, 2009
The Web Will Be the Death of Google
There is a famous story about a meeting between Yahoo and Microsoft which took place when Yahoo was still a small start-up.
There is a famous story about a meeting between Yahoo and Microsoft which took place when Yahoo was still a small start-up.
Here is the latest comic from our Joy of Tech friends at Geek Culture, Nitrozac and Snaggy. Joy of Tech appears twice weekly in the Voices section of this site. (Click on the image to see a bigger version.)
With Yahoo CEO Jerry Yang gone, and the company actively seeking his replacement, the big question is what should it do next and whom should it hire to replace Yang? Kara Swisher has a lot of names on her short list, though I don’t think any one of them will prove to be Yahoo’s knight in shining armor. Regardless of the company’s final choice, here is what Yahoo shouldn’t do.
Eight months ago, Yahoo! CEO Jerry Yang had a chance to sell his company to Microsoft for $43 billion. He refused. Now Yahoo’s market value stands at $18 billion. This raises a question: Why is Jerry Yang still running this company?
To anyone who says that it’s inconsequential that Yahoo understated the level of shareholder dissatisfaction by more than half thanks to a “tabulation error” by its proxy counter, Broadridge, I say: You couldn’t be more wrong. This incident will have ramifications in the coming weeks for the composition of Yahoo’s board.
Jerry Yang sounded downright confident on the company’s conference call with analysts earlier this week, despite the lackluster results for the Internet giant’s second quarter.
He even cracked wise with investors, noting lightly at the onset of the call that Yahoo Inc. (YHOO)
had “quite a disclaimer.”
Should he be or not be the CEO?
That is the question many are asking this week about Jerry Yang, the Yahoo co-founder and chief executive who’s marking his first anniversary in the top job.
Like Shakespeare’s Hamlet, Yang has suffered “the slings and arrows of outrageous fortune” since he soundly rejected Microsoft’s offer to buy Yahoo at an initial 62 percent premium.
If Jerry Yang has been saving up a “band of brothers” moment with his troops, this is it. The departure of Flickr’s co-founders, the husband-and-wife team of Caterina Fake and Stewart Butterfield, follows the earlier resignation of Jeff Weiner, who was executive vice president of Yahoo’s network division.
The great CEOs are always focused on products and product marketing. Three that come to mind: Steve Jobs, Bill Gates and Eric Schmidt. The products are: Mac & iPod, Windows and Google Search. What’s Yahoo’s great product? What’s its marketing focus? … If I were one of the shareholders voting on the proxy, here’s a question I would ask: If Yahoo is going to remain independent, what kind of company is it going to be?
Jerry Yang, your stock is in trouble. This time, it’s not (necessarily) the value of Yahoo, where Yang is chief executive, that is cause for concern, but the way Yang’s staff feels about him, at least according to reports from start-up Glassdoor.com. The new Web site, based in Sausalito, Calif., aims to uncover salaries, work conditions and workplace attitudes of employees at some of America’s biggest companies by collecting contributions from current employees.
Today at the D6:Conference, the corporate doyens and business leaders were out in full force, both on and off stage. Those who were grilled on stage showed were true to their form–Amazon’s Jeff Bezos charmed everyone with optimism for Kindle, Yahoo’s Jerry Yang was all emotion and patience, and Mark Zuckerberg of Facebook showed that he is still a young fella brimming with big dreams.
After a funny film featuring nearly every luminary under the sun giving Yang and Decker advice (Buffet, Stringer, Zuckerberg, etc) Yang and Decker took the stage and Walt immediately asked them about the MSFT deal. Yang agreed that they could not get to a price, but that there were other issues as well, regulatory is one that came up, but I can imagine others (ie, approach to open source, total installs of Outlook at Yahoo, etc.!).
Jerry Yang was able to rope-a-dope Steve Ballmer. But he’s never had to square off against a royal pain in the ass like Carl Icahn. Wednesday afternoon, Icahn, a billionaire with a God complex — or is that repetitive? — wrote a new chapter in this deliciously goofy Microhoo saga when he launched plans for a proxy contest to challenge Yahoo’s famously feckless board of directors with his own handpicked nominees.
So here’s the basic conundrum in this whole concept of Carl Icahn launching a proxy contest for Yahoo (YHOO): What’s the point unless he can get Microsoft (MSFT) to launch a new bid?
It is certainly possible that institutional investors are sufficiently irritated at Yahoo CEO Jerry Yang and the company’s board that they might want to oust some or all of the directors. But to what end?
Reports, rumors and innuendos are bouncing around the Web that Google may not want to cut an advertising deal with Yahoo after all. This before there is actually substantiation that Google and Yahoo are crafting an advertising deal, which was something of a rumor and innuendo in the first place, allegedly planted to let Microsoft know that Yahoo had options.
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