Yahoo chairman Roy Bostock and three other directors will quit the Yahoo board, as the company struggles to plough ahead with an internal refurbishment, including discussions on dealing with its stakes in China's Alibaba Group and Yahoo Japan.
Yahoo’s Board Shake-Up
Now the Yahoo board is being revamped, with Yahoo replacing more than half a dozen of the previous serving directors. Yahoo’s chairman, Roy J. Bostock told a business magazine Tuesday that neither of the four company’s longest-serving directors would stand for re-election.
The shake-up announced Tuesday in several industrial magazines, continues a severe alteration of Yahoo's leadership during the past month as the company negotiates to sell its Asian assets in a complex deal that could help ignite a long-promised turnaround.
The shake-up began after Yahoo hired former PayPal executive Scott Thompson as its CEO, a few days before the new year arrived, co-founder Jerry Yang resigned from the board and restricted all other ties with the company that he helped start in 1995.
Roy Bostock’s Statement
Roy Bostock said in a statement to a news agency, “We have engaged with potential investors and reviewed proposals concerning an equity investment in the company, although at this time there have not been any proposals which have been deemed by the committee to be attractive to our shareholders. We are also in active discussions with our partners in Asia regarding the possibility of restructuring our holdings in Alibaba Group and Yahoo Japan. The complexity and unique nature of these transactions is significant.”
The board has also elected two new directors, the technology executives Maynard Webb Jr. and Alfred Amoroso, and plans to search for more.
Yahoo’s ‘Positivity’ Policy
The changes that have been currently taking place in Yahoo represent a new start as Yahoo seeks to recover from failure of its stature as a pre-eminent online property. In spite of being a powerful Web hub, Yahoo has failed to make serious inroads in the new cutting edges of social networking and mobile. Many analysts remain doubtful and even more, unconvinced, that any strategic shift will be sufficient to revive the troubled brand, which is faced with dwindling options. But the infusion of new blood may buy some time.
Ken Sena, an analyst with Evercore Partners said, “For investors, there will be some satisfaction. At least this creates the perception that the board is listening to investors and that they are willing to make changes.”
With the most recent shake-up, Yahoo’s remaining directors will join the company’s board after the failed sale to Microsoft. Among them is Brad Smith, the chief executive of Intuit and a main supervisor of Yahoo’s turnaround efforts.