Is Yahoo’s Ship Sinking One Last Time?
Since Yahoo co-founder Jerry Yang announced his departure, the lifeboats appear to be lowering in what could become a mass exodus from the struggling search portal. Yang also has left the boards of Yahoo Japan and Alibaba Group, a statement from Yahoo noted.
At least four other directors are expected to follow Yang from the company soon including Chairman Roy Bostock, Arthur Kern, Vyomesh Joshi, and Gary Wilson, reports Kara Swisher for All Things D.
Yang co-founded Yahoo with David Filo in 1995 when they were students at Stanford University. Yang helped create the world´s most popular website, with a market capitalization greater than $100 billion.
Ad revenue soared for Yahoo as the internet filled out with websites for everyone and everything were hastily created, helping Yahoo´s stock value surge. After peaking in January 2000, Yahoo shares plummeted 97 percent before bottoming out in September 2001 with the first dot-com bust. Today, the company is valued at about $19.1 billion.
After becoming CEO in June of 2007, Yang vowed to renew the struggle against Google´s growing dominance. “I´m ready to dig in and make sure we can take Yahoo to the next level,” Yang said at the time.
The next year, with no meaningful growth to show for his efforts, Yang spurned an offer from Microsoft to acquire Yahoo for $47.5 billion, a mistake he is sure to regret to this day.
Yahoo´s more recent loss of luster in recent years is from watching Google steal away almost the entire market that was once the domain of Yahoo. Google was able to capitalize on the quickly changing internet search market, writes Brian Womack for Bloomberg.
Yahoo´s fate was further sealed as it watched Facebook capture the time and attention of people seeking more social networks online.
Jack Ma, CEO of Alibaba Group said he has, “great respect” for what Yang has built at Yahoo. “Jerry is a longtime friend with whom I have had a strong personal and professional relationship that has withstood some ups and downs over the past few years. We look forward to continuing our constructive relationship with the Yahoo board and leadership.”
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