If one has been watching the recent Olympics diving on NBC in the evening, the last thing any diver would like do upon entry is agitate the splash meter too much. (But even the superb Chinese diver couldn’t do a towering entry without incurring some splash.) And now Marissa has made her grand entry with the inevitable splash, perhaps a bit too much too soon.
I have been a longtime Yahoo long until about a fortnight ago; I posted then 5 reasons for the change of heart.
I might now add another for unloading recently: To avoid a fat-tail event like the present one unfolding. To be sure, nothing significant has been implemented yet since her arrival at Yahoo but for the cumulative angst over what she will actually do next is what that is driving the stock down. Her penchant for a seeming dose of shock therapy is unnerving investors. Instead of planning to inject sudden and large doses of nostrums which will be hard on digestion, she should space out her revamping program. It is not right to put YHOO investors through the current wringer in mere anticipation of her next not so secret gambit that screams for total clarification...a more experienced CEO would have carefully avoided giving the impression of embarking on a regimen of shock therapy.
...to be continued...
It was a bold move for powerbroker Dan to pick Marissa. She now has an uphill challenge ahead to say the least balancing the short-term shareholder interest against the long-term future of a Yahoo (to be remade in the image of Google?). Meg Whitman could not slingshot HPQ forward in less than a year, so expect no overnight miracle from Marissa either. Diehard stakeholders in Yahoo would have to be very patient with her at a minimum of 4 to 8 quarters and hope for the best.
But why such patience this time around as (I suspect) Dan would counsel. Simply because it is a steep learning curve for someone without any previous CEO-related credentials to fully revamp an internet behemoth like Yahoo. Further, anything less than Job’s patience to allow her full latitude to do her bid would smack of Japanese political boondoggle in premiership--something like 6 PMs in 5 years?