Exit of ‘Chief Yahoo’ could see injection of cash

yahoo co-founder Jerry Yang has quit the company he started in 1995.

The abrupt move appeases shareholders who had blasted the internet pioneer for pursuing an ineffective personal vision and impeding investment deals that could have transformed the struggling company.

Mr Yang’s departure comes two weeks after Yahoo appointed Scott Thompson its new CEO, with a mandate to return the once-leading internet portal to the heights it enjoyed in the 1990s.

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Wall Street views the exit of ‘Chief Yahoo’ as smoothing the way for a major infusion of cash from private equity, or a deal to sell off much of its 40 per cent slice of China’s Alibaba, unlocking value for shareholders.

“Everyone is going to assume this means a deal is more likely with the Asia counterparts,” an analyst said.

“The perception among shareholders was Jerry was more focused on trying to rebuild Yahoo than necessarily on maximising near-term shareholder value.

“It certainly seems things are coming to a head as far as realising the value of these assets.”

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Mr Yang, who is severing all formal ties with the company by resigning all positions including his seat on the board of directors, has come under fire for his handling of company affairs dating back to an aborted sale to Microsoft in 2008.

In a letter to Yahoo’s chairman of the board, Mr Yang said he was leaving to pursue “other interests outside of Yahoo” and was “enthusiastic” about Mr Thompson as the choice to helm the company.

The 43-year-old is respected in the industry as one of the founding figures of the world-wide web.

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