Monday, June 18, 2007

Goodbye Terry, Welcome Back Jerry

In a widely anticipated move, Yahoo CEO Terry Semel stepped down today and will be replaced as CEO by Yahoo founder Jerry Yang. Why was Semel shown the door? Quite simply Semel hasn't been able to do much with Yahoo's stock in the almost 3 years since rival Google's IPO. In fact on August 18th 2004, the day before Google's IPO, Yahoo closed at $28.48. Today Yahoo opened at $27.72 still under its value from nearly 3 years ago. In the meantime Google has risen over 600% from $85 to $515. Needless to say many Yahoo investors have become quite frustrated. Recently there have been rumors swirling about the possibility of a Microsoft takeover as well as discussions with Time Warner and eBay. But, to date nothing has come of it. Maybe now with Semel out of the way Yahoo will make a move. After opening the day trading at $27.72 the stock will likely open tomorrow around $30. Where it goes from there is anyone's guess.

Here is Yahoo versus Google over the past 3 years. I think it was time for Semel to leave:

Posted by The La Jolla Guy at 6:45 PM

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