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Swisher: Yahoo Will Win Proxy, But Jerry and Sue Will Ultimately Lose

Posted Jul 16, 2008 02:41pm EDT by Aaron Task in Investing, Internet, Newsmakers, Venture Capital, M and A, IPOs

As Yahoo's Aug. 1 shareholder meeting draws near, there's a lot of speculation about the fate of CEO Jerry Yang. The media has focused on shareholder anger and the intense feuding among Yang, Steve Ballmer, and Carl Ichan.

But behind the scenes, some of the greatest animosity is directed toward Yahoo president Sue Decker, according to Kara Swisher, co-executive editor of AllThingsD.com.

Microsoft executives tell Swisher they like Yang personally (even Icahn had nice things to say about him, reports Andrew Ross Sorkin) but are unhappy with Decker, viewing her as an obstacle to a deal. Swisher also cites firsthand knowledge of major Yahoo shareholders who report equal frustration with the CEO and his top lieutenant. Decker has been a senior Yahoo executive since 2000.

In the end, Swisher believes major Yahoo shareholders like Gordon Crawford ultimately won't support Carl Icahn's proxy fight because of his lack of a cohesive plan to run the company and his clumsy and clearly self-serving efforts to drive an alternative Yahoo-Microsoft search deal.

But Yahoo winning the proxy fight shouldn't be viewed as a vote of confidence for senior management, she says. One way or another, Yahoo is very likely to have new leadership sooner rather than later.

17 Comments

jd
jd - Wednesday July 16, 2008 03:14PM EDT

just sell the company and make me happy..

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 03:29PM EDT

Hurry up and sell it.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday July 16, 2008 03:30PM EDT

sell the company to micorsoft

Paul L
Paul L - Wednesday July 16, 2008 03:30PM EDT

Finding the best in the two evils is risky!

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 03:45PM EDT

yang, decker and ALOT of other useless, clueless and very expensive VP's need to go, and NOW is not soon enough. The brain drain of talented engineers is quite extensive due to continued frustration over years of mismangement of the once internet leader and destination on the internet...I know this because my phone rings multiple times daily asking for recommdations to facilitate job searches and placements. Buying AOL at a Time Warner fire sale isnt the saviour either...you just get even more incompetent boobs running a has been company with no future.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 03:46PM EDT

yang, decker and ALOT of other useless, clueless and very expensive VP's need to go, and NOW is not soon enough. The brain drain of talented engineers is quite extensive due to continued frustration over years of mismangement of the once internet leader and destination on the internet...I know this because my phone rings multiple times daily asking for recommdations to facilitate job searches and placements. Buying AOL at a Time Warner fire sale isnt the saviour either...you just get even more incompetent boobs running a has been company with no future.

Herb
Herb - Wednesday July 16, 2008 03:54PM EDT

I'm not sure what Microsoft would do with Yahoo if it got it, other than layoffs. Microsoft has its own problems right now - Vista is a bloated joke and has not been accepted by many major corporations. They prefer XP. Microsoft should fix its own crap before buying anybody else.

roraima
roraima - Wednesday July 16, 2008 04:03PM EDT

Yang: Sell the company to microsoft and make happy to shareholders. Yahoo! is not only you ego. Please, think big!

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 04:26PM EDT

You guys recommending a sale to microsoft are a bunch of idiots. Microsoft squelches competition and innovation. It doesn't have a plan and they haven't created anything new in a very long time. It has reached a size where they can't even fix their own problems. Also with a takeover/sale, it will take at least a year to start seeing any improvements in a business. Those of you from the valley should know since mergers and acquisitions are a norm here. It is always a very disruptive process. I would say sell the company if the acquirer made sense, had a plan or have demonstrated they can grow a business. Also as a regular user of yahoo, I want alternatives to google and microsoft.

Softshoe
Softshoe - Wednesday July 16, 2008 04:26PM EDT

Hey: I certainly enjoyed your guest,Kara Swisher, today. It's amazing what you can learn,if you listen more and talk less. She is about the first guest I have seen on your show that makes complete sense. She is right on,and seems to know what she is talking about. I watch your show religiously every day and enjoy it very much. Ask Henry,one day, to sit on his hands, and see if he can talk. I get a kick out of his neat comments,and yours also,Aaron. My computer does not have sound,but I enjoy reading the note highlights foot noted. A continuous scroll would be great for the hearing impaired,like me, and for those that dont have sound on their computer. Thanks again. You have a great show. I am just messin" wit Henry, re his hands.lol James B. Smith 9408 Don's Ct. SE Huntsville,Alabama 35803 Ph 256-479-9001

Twizted
Twizted - Wednesday July 16, 2008 10:12PM EDT

Fire everyone.Turn yahoo into a parking lot.Let Yang park the cars and Decker sell the tickets.

DevendraR
DevendraR - Wednesday July 16, 2008 10:47PM EDT

I predict that Microsoft end up buying Yahoo sooner than later. The reason is simple that MSFT is flattening on the growth in its traditional Windows market. Moreover, there is a big threat from the pervasiveness of internet. No one knows what the future of computing is 5 years from now. With all big bucks, now google has power to take advantage of explosive growth of internet. If the internet connections become faster, it is quite possible to do away with windows altogether. A common computer user could just live within the browser using the free wares. The days are not far away! Microsoft knows this and they want to grow in internet now. My bet would be that the transaction takes place before the share holder meeting...

DevendraR
DevendraR - Wednesday July 16, 2008 10:48PM EDT

I predict that Microsoft end up buying Yahoo sooner than later. The reason is simple that MSFT is flattening on the growth in its traditional Windows market. Moreover, there is a big threat from the pervasiveness of internet. No one knows what the future of computing is 5 years from now. With all big bucks, now google has power to take advantage of explosive growth of internet. If the internet connections become faster, it is quite possible to do away with windows altogether. A common computer user could just live within the browser using the free wares. The days are not far away! Microsoft knows this and they want to grow in internet now. My bet would be that the transaction takes place before the share holder meeting...

Yahoo! Finance User
Yahoo! Finance User - Thursday July 17, 2008 11:48AM EDT

sell ASIA and pay dividend. There is more value in YAHOO if they change top management, and keep getting better.

cpbz
cpbz - Thursday July 17, 2008 02:05PM EDT

This has been a "tempest in a teapot". Yhoo has not offered any value to its shareholders in some time. The only people getting anything out of this is the lawyers. Why does Yhoo continue to be run as if it is a private company? Is no one looking out for shareholder interests? Yhoo had an offer of 33, sure seems fair to me but then I am not privy to all the "new products/techniques" in the pipeline or is that pipedream? Prediction: Yhoo sells to Msft the whole kit thing for $30 after the proxy fight. Wasted money on lawyers, big time buyouts for people who ran a good business into the ground. There is real shareholder value.

Nicky Babs
Nicky Babs - Thursday July 17, 2008 02:48PM EDT

This guy predicts Yahoo! will have a 0% share in search. Really?!? I mean, I know how much the media loves to advertise Google for free, but I can't imagine Y! going to 0%. Maybe that's wishful thinking by another Yahoo! hater. Oh, they're out there.

Norman
Norman - Thursday July 17, 2008 03:04PM EDT

YHOO is at $23; they want $33. There is money laying in the street and I'm picking it up. This is a no-brainer.

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