- Texas man arrested for powder-letter hoax
- Islamic State opens ‘marriage bureau’ for single jihadists
- Drone almost blocks California firefighting planes
- Tornado rips off roofs, downs trees near Boston
- GOP: Environmental rules keeping agents from accessing border
- John Kerry: Millions displaced by religious fighting in 2013
- Federal appeals court rules against Virginia’s gay marriage ban
- White House says Russia ‘losing’ war in Ukraine
- Hamas turns to North Korea for weapons deal, Iran for money
- Syrian casualties surge as jihadis consolidate
Revolving door: Yahoo ushers out another CEO
Question of the Day
The troubled Internet company’s next challenge will be convincing its restless shareholders and demoralized employees that the turnaround work started during Thompson’s tumultuous four-month stint as CEO won’t be wasted.
It won’t be an easy task, given that Yahoo Inc. has now gone through four full-time CEOs in a five-year stretch marked by broken promises of better times ahead. Yahoo’s revenue and stock price have sagged while rivals such as Google Inc. and Facebook Inc. are growing as advertisers spend more money online.
“Yahoo has been floundering for years and it looks like there is going to be at least several more months of indirection now that another CEO is coming in,” said Adam Hanft, who runs a consulting firm that specializes in brand reputation and crisis management.
Yahoo’s hopes are now resting on Ross Levinsohn as its interim CEO. Levinsohn was successful running Internet services within Rupert Murdoch’s media empire at News Corp. before one of Yahoo’s former CEOs, Carol Bartz, hired him in November 2010 to aid her mostly fruitless attempt to fix the company.
“This may seem like a great deal of news to digest, but as you are all keenly aware, Yahoo is a dynamic, global company in a dynamic, global industry, so change _ sometimes unexpected and sometimes at lightning speed _ is something we will continue to live with and something we should embrace,” Levinsohn told employees in a Sunday memo that was provided to The Associated Press.
Levinsohn, 48, plans to address workers at a companywide meeting Monday afternoon.
“The bottom line is that the situation at Yahoo is a mess,” Macquarie Securities analyst Ben Schachter wrote in a Monday research note. “It remains unclear how the new management will turn things around at Yahoo.com and how quickly yet another new strategy can be formulated.”
Yahoo tried to make Levinsohn’s job slightly easier by reaching a truce with dissident shareholder Daniel Loeb, a hedge fund manager who exposed the inaccurate information on Thompson’s bio and had made it clear he would continue to publicly skewer the company unless he was given a chance to help develop a turnaround strategy.
Yahoo Chairman Roy Bostock and four other directors who already had announced plans to step down at the company’s annual meeting this year have left. All five signed off on hiring Thompson so they all looked bad with the recent revelation that they didn’t catch an inaccuracy circulating for years about his education.
Alfred Amoroso, a veteran technology executive who joined Yahoo’s board just three months ago, replaces Bostock as chairman.
The reshuffled board will now try to complete a long-delayed deal to sell part of Yahoo’s roughly 40 percent stake in China’s Alibaba Group, an investment that investors view as the company’s most valuable asset. That deal could generate billions of dollars for Yahoo shareholders and ease some of the pressure on Levinsohn.
TWT Video Picks
By David Keene
Allowing states to innovate could reduce dependency on bureaucracy
- D.C. seeks to stay judge's order allowing gun owners to carry in public
- Illegal immigrants demand representation in White House meetings
- Hillary Clinton: Forget Obama, George W. Bush made her 'proud to be an American'
- Iraqi Christians rally at White House: 'Obama, Obama, where are you?'
- Romney would win popular vote in rematch against Obama: CNN poll
- Tennessee Gov. Haslam slams White House for secret dump of illegals in his state
- White House defends Kerry failure to broker Middle East cease-fire
- Babson College, BYU win top spots in Money magazine's college rankings
- Russia violating 1987 nuclear missile treaty
- NAPOLITANO: What if our democracy is a fraud?
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq