In 2005, Yahoo! invested $1 billion into Alibaba Group (including Yahoo! China assets). Today, 6 years later, that investment is worth $10 billion according to the last offer made by Alibaba Group earlier this year to buy back some of Yahoo!’s stake. That is an incredible return on investment for Yahoo! shareholders. Congrats Jerry. And it’s even more exciting to think of what that stake could be worth in 5 and 10 years time.
Why doesn’t Carol get that? Why did she fail to water the tree that was the Alibaba relationship when she took over as CEO in 2009? Why does she do such a poor job describing the Alibaba business even now? Why didn’t she accompany Jerry Yang and Tim Morse to China last week to meet with Alibaba Group about the current state of affairs, if that’s such an important relationship? Why did she sign off on the PR war with Alibaba Group once she got embarrassed by the buried disclosure in her last 10-Q?
Carol was supposed to be this wise 62 year old when she took the reins from Jerry two years ago. Her mishandling of the Alibaba relationship and her ham-handed turnaround of Yahoo!’s core business are amateurish.
So, to compare Carol to Steve Jobs’ return to Apple (AAPL) is laughable. Why should we give the benefit of the doubt to someone who has been a bull-in-a-china shop leader for the last two and a half years? Why does she deserve our understanding and patience when Yahoo!’s stock price is up 22% since the day she was announced as the new CEO, while the NASDAQ is up 78% over that same period?
If anything, since Yahoo! was a turnaround and its stock was at $12.22 the day before she was announced as CEO, Yahoo!’s return should be double the NASDAQ return over that same period. If it had doubled the NASDAQ return, Yahoo!’s stock should be at $32.97 today.
Absolutely positively on the money correct. Known fact! Published often. I do not have the time to devote to daily prayers to the stock market gods that they may grant me a miracle and anoint the Yahoo Inc. share value. I have been tempted to play it but not smart given my geographic location and internet reliability. I have zero faith in current management. But hoping for a better team to take the stage soon. Then maybe i will take a position. In my mind (counting both brain cells) Yahoo Inc. share price is fully valued. Events may be at hand that will change that. But until such point in time that those events occur. No thanks, i am old and not as quick as i once was. If i make my grab now i will surely catch the wrong end of the knife.
It is often said that the ways of the old are mightier than those of the young and bold.
But that is a story yet to be told.
How could anyone buy shares now? It is not yet determined what you are really buying. Who knows, in 2 months from now it might be announced something else is gone that went missing yesterday. Why in the world would i buy shares in a corporation that does not keep me informed of what i have a need to know. Why would i suddenly have a desire to invest in a corporation that does not know or guard their investments? Have little or no regard for their share holders. If some gave me shares today i would sell them on the next trading day. But that is my opinion today. Tomorrow is a new day, circumstances may change. My opinion may change. Only time will tell. My crystal ball did not come with instructions and i cannot get it to work. Ouija board i have but i lost the little pointer thing. In my research here on markets, demographics and websites i come across all sorts of post, news articles etc. all of which i dutifully post for the board. Your welcome. But i still believe the Yahoo Inc. platform is the best on the internet. I believe the CEO has done a great job of bringing operating costs in line with earnings. But there it ends. I hope Yahoo Inc. soars like an eagle next week. But given that it has recently been plucked, it may not happen anytime soon. So to summarize; Yahoo Inc. got plucked and Yahoo Inc. share holder got what? BTW who is leading at INDY? Everything is blocked here.
Perhaps she didn't go to China for the very fact that relations are much more strained with Alibaba because of her bluntness - not sure it was rudeness - as Jack Ma may have had it coming - but just like that cretin who dropped the f-bomb on her and she answered in kind - there was no need to stoop down to their level - she can't seem to keep her cool and take the higher ground above the scum who challenge her.
What bothers me even more is the almost total lack of innovation at Yahoo - you can't just cut costs, you need to constantly improve and innovate. Totally missed the mobile and app tsunami, for instance.
Well - to sum it up - another likely reason she didn't go to China: She's already finished. They are finding or negotiating the contract of her replacement at this moment. What a waste of shareholder money she has been, although she might have been useful for trimming the fat at Yahoo, but not at that salary.
This is the first time I am truly expecting significant news out of Yahoo on Tuesday or at least by Friday. I actually bought some of the next week 16 calls, but sure was disappointed in the close. It's obvious there are sellers who want out any time the price gets up even a few cents. Don't expect that to change unless we get positive news VERY soon.
Actually, amid all the speculation
I like this statement also
It really angers me that a CEO of a $20 billion company — who’s been paid by me and other Yahoo! shareholders $60 million so far for her last two years of work — could show such a paucity of understanding for the most strategic asset within the company. That’s actually very offensive to me.
I want to honor Mark Haines’ legacy by saying explicitly that the Emperor Carol Bartz has no clothes. She really doesn’t. She shouldn’t be running Yahoo! and should step down immediately. As she likely won’t, I will be voting on June 23rd that she not be re-elected to the board. I’ll also be voting against the re-election of 5 other non-performing Yahoo! directors. I hope my fellow Yahoo! shareholders will study their proxy and make their own decisions on this matter wisely.
It’s time for this nonsense of under-performing CEOs clinging to power to stop once and for all. This is the leader we get for $60 million out the door in the last two years? One so out of touch that she doesn’t really understand the value and importance of the most wildly successful Chinese investment any Internet company has ever made? One who only wants to talk about the “core” business that Yahoo! shareholders are currently valuing at zero according to the stock price? Are you kidding me?
This is a embarrassment. This is shameful. Carol Bartz and the rest of her crony directors should leave now.