Harrison Keyes

Yahoo Synopsis

Yahoo Inc, Chairman Terry Semel stepped down as CEO ending his increasingly ineffective pursuit of on-line search leader Google Inc., a losing battle that has discouraged Yahoo's shareholders and employees. Yahoo has struggled in recent years, losing market share to rivals such as Google and being criticized for poor technology and a lack of innovation. Semel quickly proceeded to turn Yahoo into a media and content company fit for the internet age. On paper it seemed to be a great strategy but there was just one problem (Weber, 2007). The problem was not the lack of content; it was the fact that Yahoo failed to focus on its core business which is helping web users to find information. Announcing his departure, Mr Semel said no-one at the firm was satisfied with the company's recent financial performance. "This is a time for new executive leadership, with different skills and strengths, to step in and drive the company to realize its potential," he said. "It is the right thing to do and the right time is now (Weber, 2007)." Semel assured shareholders attending Yahoo's annual meeting that he had the fortitude to lead a comeback but was unable to deliver. He has been counting on recent improvements to Yahoo's online advertising system and a series of key partnerships to boost profits after the company suffered an 11 percent drop in its first-quarter earnings. The company has appointed co-founder Jerry Yang as its new CEO and Susan Decker as its president. Semel will remain chairman in a non-executive role after spending the last six years running the company. Jerry Yang states ""I am totally excited and energized about assuming the leadership of this great company, we have a long and prosperous future if we execute correctly (Weber, 2007)." Google is leading the on-line search