Yahoo! Inc and Corporate Governance13 June, 2008, 15:44. Posted by Zarathustra
Tags: Corporate Governance
Yahoo! Inc. (YHOO) Chief Executive Officer Jerry Yang’s five-month conflict with Microsoft Corp. ended yesterday. The outcome may not be good for him or the Internet company’s investors.
Yahoo said yesterday it scrapped talks after Microsoft refused to pay the $47.5 billion it offered last month. Instead Yang unveiled a partnership with Google Inc. While that deal may add $800 million to annual sales, it may not be enough to push the stock above $30, Canaccord Adams’s Colin Gillis said.
“When Microsoft walked, it was a real walk,” the analyst said. The New York-based analyst recommends selling Yahoo shares. “This deal has the perception of damaged goods.”
Executives are supposed to act for the shareholders. Jerry Yang seemed to have pushed to much in the takeover defence. If the CEO were pushing to defence the takeover which was actually a very good price, what was board doing? Were they acting for the interest of shareholders?