Yahoo's announcement that it is to replace
Jerry Yang as chief executive has boosted the internet
company's flagging share prices.
The news has raised hopes the firm may yet be able to strike a
deal with Microsoft and has lifted Yahoo shares by 8.7% by the
close yesterday, according to the Financial Times.
Stakeholders believe Microsoft is still interested in the deal
and a new chief executive at Yahoo would be able to pursue this
option.
At the very least a new CEO could come in with a clean slate to
explore Microsoft's subsequent proposal to buy Yahoo's search
business.
Yahoo's decision to replace Yang comes less than 18 months after
his appointment, but comes after shareholder criticism for his
rejection of
Microsoft's buyout offer in February.
Microsoft had offered $33 a share for Yahoo, but since then
shares have dropped to levels below $11.
Yang will be staying on as a board member at Yahoo, but will be
taking a more back seat role.
Yahoo has hired executive search firm Heidrick & Struggles
to hunt for Yang's replacement.