Is Yang Still In Control At Yahoo?

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1. jenkins
   

   May 6th, 2008 at 2:50 pm

   This is the strategy — to get yahoo to gravel and comeback to the table with a weakened position. This is all about tactics, plain and simple.

2. John / SocialNext
   

   May 6th, 2008 at 2:53 pm

   Good for Microsoft. Y! needs to take this deal.

3. erwin blom
   

   May 6th, 2008 at 2:56 pm

   Strange journalism. ‘Here’s the latest rumor we’re chasing.’ Can’t you publish when you know it is a fact?

4. Ha
   

   May 6th, 2008 at 2:57 pm

   Brilliant MS! Now offer them $29

5. Anon
   

   May 6th, 2008 at 3:03 pm

   Sorry I haven’t understood Microsoft’s tactics - is it that they sidelined Yang by ‘contacting Ron Olsen, the lawyer for Yahoo’s independent directors, on Friday to reiterate the $33 bid’.. ?

6. Jay (Twitter @qthrul)
   

   May 6th, 2008 at 3:05 pm

   Taking Yang -and- Ballmer out of the mix would seem to get a deal done with less drama.

7. Andy Gongea
   

   May 6th, 2008 at 3:09 pm

   The concept of Yin and Yang (or earth and heaven). So I think the Yang has abandoned Yin. He is way up high with his mind in heaven.

   Yin calling Yang …. Yin calling Yang …. Over

8. Slali Baluma Lada Mabo
   

   May 6th, 2008 at 3:15 pm

   Wow. The lawyers have to call the lawyers to figure out who’s in charge. There is a very apt name for this. It’s called a cluster-f($k. Unbelievable that the people who run these multi billion dollar corporations can’t get their act together. Just goes to show it’s better to be lucky than smart.

9. RONLG
   

   May 6th, 2008 at 3:20 pm

   When you’re public, your shareholders are in charge.
   Having your lawyers or board step on toes to get things done isn’t abnormal.

   The first thing I thought with the news of Microsoft pulling the deal was, “Yahoo! is getting a little too greedy.” Looks like I was right!

10. pffft
    

    May 6th, 2008 at 3:23 pm

    Erwin - it would be strange if it was, indeed, Journalism (big J). But it’s not. Not that I don’t like and read TechCrunch but I wouldn’t really call blogging like this “Journalism”. It’s blogging. Which is kind of like almost journalism mixed with water-cooler gossip and brain farts.

11. Sprague Dawley
    

    May 6th, 2008 at 3:29 pm

    To be fair, last night on Charlie Rose, Techcrunch (Arrington’s) take on the matter was a lot clearer than that of Andrew Ross Sorkin of the Times.

    On a situation like this few inside sources will want to go on the record. Call it rumor, spin or blind item — it still provides insight. So long as it is shown — eventually — to have been true.

12. jenkins
    

    May 6th, 2008 at 3:31 pm

    Yahoo played this poorly. Microsoft is smart. yahoo will comeback to them through backchannels and something will get done in the $34-$35 range. Ballmer would have to be crazy to go this far just to pull out when he encounters a little resistance. This is all part of the master plan.

13. jro
    

    May 6th, 2008 at 3:32 pm

    Perception is reality - speculation notwithstanding, does anyone think Yang is in charge now?

14. Mogilny
    

    May 6th, 2008 at 3:32 pm

    @Erwin Welcome to TC…

    @pffft Agree… but that’s what makes blogging interesting.

15. Matt
    

    May 6th, 2008 at 3:36 pm

    Weird, I thought I typed in techcrunch.com, but I must have put in valleywag.com instead.

16. Ron Diggity
    

    May 6th, 2008 at 3:37 pm

    Honestly, whomever thought Ballmer was an idiot, is an idiot. He’s not the head of one of the most successful companies because he’s stupid. He knows how to negotiate, knows how to take people out, and has more pull in Silicon Valley then most people would assume.

    Go Microsoft, make it happen!

17. Nick
    

    May 6th, 2008 at 3:39 pm

    “Strange journalism. ‘Here’s the latest rumor we’re chasing.’ Can’t you publish when you know it is a fact?”

    This is a blog. It does not have to play by journalistic rules, and I am not saying that is a bad thing. Blogs are opinionated, also. Blog readers want opinions, interpretations, and analysis. If you don’t like it go to AP or Reuters or something.

18. chush.net
    

    May 6th, 2008 at 4:02 pm

    Sorry, but this does not make any sense. I find it hard to believe that Yang refused a $33 deal without consulting the board, and that Roy Bostock did not have a say in coming up with $37 number. Besides, a year ago MSFT was ready to pay $40, and at that time, market outlook was no better than it is now, and what’s more important, Yahoo was making less money than it is now. All that makes me think that the main question in the negotiations is not how much Yahoo is worth, but how much Microsoft can afford.

19. Yahooooo!
    

    May 6th, 2008 at 4:14 pm

    From what I’ve been reading from the major shareholders, and seeing on CNBC, WSJ, etc.

    The Board members are in danger of losing their jobs with the next shareholder meeting. They’re going to be voted off the island, unless they do something like fire Yang and re-start negotiations.

    They’re simply looking out for #1 now.

    MS all but won by walking away.

20. phenom
    

    May 6th, 2008 at 4:17 pm

    Good for Microsoft. Yahoo needs to take this deal.
    http://vidsonly.blogspot.com/

21. ceejayoz
    

    May 6th, 2008 at 4:28 pm

    Yahoo’s shortsighted investors need to sit back and take a breather.

    YHOO is getting hit by the general recession - just like AAPL, which dipped into the 120s for a while before rebounding all the way back up to 186 today. The current price is lower than it should be.

    Yes, Microsoft’s price was a premium at the current prices, but Yahoo’s management has a responsibility to the company’s long-term future, not just short-term investor profits. Takeover by Microsoft has the potential be horribly bad for Yahoo.

    I use Flickr, I use Del.icio.us, I use YUI, and I fear for all three should MSFT get their grubby hands on them. They ditched their own flagship products - PlaysForSure, anyone? - and I expect nothing less for Yahoo’s under Microsoft management.

22. Ha
    

    May 6th, 2008 at 4:30 pm

    @ceejayoz

    recession?

23. Alex
    

    May 6th, 2008 at 4:53 pm

    What a disaster:
    1) Lawyers are now spearheading negotiations
    2) Goes to show you can not have an engineer run a company (Schmidt is one in a million)

    …put a tent on that circus

24. finance dragon
    

    May 6th, 2008 at 4:59 pm

    Yeah, I’d like to thank Jerry Yang for being such a good custodian of my Yahoo! shares and holding out for a higher bid from no one.

25. Fabian Schonholz
    

    May 6th, 2008 at 5:11 pm

    Any surprises here? No.

26. jro
    

    May 6th, 2008 at 5:19 pm

    @ceejayoz: YHOO’s current price is affected by the recession? Meaning, if we’re in a recession, all stock prices are depressed? Umm, ok. The complexities run a little deeper than that, so I’m not sure how you’re tying these two together here.

    I’m going to guess by your comments that you’re not one of the “shortsighted investors” who have seen their investment value priced anywhere from the teens (5 years ago) to the low 40’s (Q1 2006) and then back down to the mid twenties (present.) Other companies have provided exceedingly better returns in that same timeframe. Basically, it’s a financially underperforming asset.

    BTW, Flickr/Delicious/YUI: I like/love them as well. Yahoo makes negligible income on these services, though. Great products that don’t make any money.

27. matt
    

    May 6th, 2008 at 5:26 pm

    And it ain’t worth nothin if it doesn’t make money huh? Yea fuck open source, sell everything to the highest bidder

28. Righteous Indignation
    

    May 6th, 2008 at 5:35 pm

    So Erick, you little twit….now you are jumping on the Yang bandwagon. Don’t you feel stupid for buying the Yahoo spin that Balmer’s job was in jeopardy? Balmer is cutting off Yang’s little penis and screwing Yahoo with it. The ruthless Balmer will own Yahoo for less than $30 a share. Hey Erick, so why is Jerry Yang answering to the Board right now and not Balmer? Ever occur to you that the MS board has confidence that Balmer knows what he is doing.

    No wonder you’re a blogger and not a journalist.

29. Peter
    

    May 6th, 2008 at 5:41 pm

    we already lost one TechCruncher over this debacle - i say we clean house and get rid of all the incompetents - which means Ballmer is out, and Yang stays, of course.

30. Karim
    

    May 6th, 2008 at 5:48 pm

    I think I saw what was coming when Yang held that press conference where he sat down, cheeseburger in hand, mumbled something about never having a chance to say goodbye to Dad, then announced that, effective immediately, Yahoo! would no longer be in the search engine business, until such time as he could figure out what they should really be doing.

    Of course there was an uproar from the crowd. Then that guy who looks like Jeff Bridges took the microphone and said that the deal with Google would allow Yahoo! to concentrate on their core competencies, and the MAIN THING was that Jerry was home safe and sound, or something like that.

31. Victor Shamanovsky
    

    May 6th, 2008 at 5:54 pm

    YHOO must go for $29, the fair price.

32. Richard Taylor
    

    May 6th, 2008 at 6:13 pm

    I do not understand. Surely the board of directors led by the Chairman are the group of people who make the decision as to whether to accept or reject the bid. In this group, Jerry Yang is one amongst many and not the leader. His job as CEO is to run the business. The person who is responsible for the bid being lost is the Chairman of the Board.

33. buzzbishop
    

    May 6th, 2008 at 6:15 pm

    It’s like “Sex with the Ex” .. Please don’t break up with me!! Give me one more chance!! We’re good together!

    I LOOOOOVVVEE YOU!!!!!

    Lol. this is a comedy beyond comedies. Buy AAPL.

34. EH
    

    May 6th, 2008 at 6:27 pm

    Hah, there’s going to be a lot of nick changes in the coming weeks if Bostock squeezes MSFT for $35.

    As for Arrington on Rose having a “clearer” picture of the issues, nobody doubts that Arrington has a well-formed prejudice toward the deal. You might as well ask what O’Reilly thinks of Hillary, as if you didn’t know the answer. Sorkin is a journalist, he’s actually following the story where it leads, not describing where he’s been dreaming for weeks it will go.

35. JK
    

    May 6th, 2008 at 7:31 pm

    Erick, I enjoy most of the articles on Techcrunch, but I’m compelled to say that this is a lame article. It’s like you don’t have any real news so you’re making stuff up. I’m all for opionions and interpretation, but this article stinks like a fart.

36. Sandeep
    

    May 6th, 2008 at 7:37 pm

    For the last few days I have seen a lot of “speculative” stories on TC (about yahoo deal).

    Michael/Eric: Its possible that these stories are giving good page views to TC. But in long run, there is a danger the the site might be “branded” as “Yellow Journalism” of Tech blogging.

    Question: Why are we having a discussion on “speculation”? If blogging wants to be a serious competitor and complementer for the traditional journalism, then please do not “speculate” in the blog. A story that contains “researched data” has more weight than the one with “speculative” data.

    TC is the most widely read tech-startup blog. Please maintain its brand.

37. Haha
    

    May 6th, 2008 at 8:01 pm

    you no more Yangee my Wankie!

    Sorry, I could not resist.

38. Mnky Matt
    

    May 6th, 2008 at 8:06 pm

    As far as rampant speculation goes that covers both sides/possibilities–they did meet, or did they, this is pretty good.

39. Yahooooo!
    

    May 6th, 2008 at 8:16 pm

    @Sandeep
    “Michael/Eric: Its possible that these stories are giving good page views to TC. But in long run, there is a danger the the site might be “branded” as “Yellow Journalism” of Tech blogging.”

    Nah, ValleyWag has that one sown up for good.

40. Geo
    

    May 6th, 2008 at 8:53 pm

    Its hard to figure out who screwed up more and if there will be *any* winners regardless of outcome.

41. ballzack
    

    May 6th, 2008 at 9:51 pm

    You TechCrunch hacks are just pissy that your end of the world predictions for Yahoo aren’t coming fast enough. You’re about as accurate with your predictions as Wired used to be in the 90s? What’s that Negroponte? The internet is about to bring world peace?

    You fail at analysis.

42. Ed
    

    May 6th, 2008 at 9:56 pm

    Steve Ballmer can eat Jerry Yang for breakfast. Microsoft is playing the merger dance, just like Oracle/Larry Ellison did with BEA Systems.

    But Bill Gates needs to get Microsoft’s mojo going again. Not so sure MSFTYHOO is going to be a Google killer.

43. Sandeep
    

    May 6th, 2008 at 10:13 pm

    @ Yahooooo! (Did I pick right number of ‘o’z) ?

    Even 1% of Valleyway style of blogging will dilute the TC brand.

    Its New York Times vs New York Post kind of difference.

44. jro
    

    May 6th, 2008 at 10:48 pm

    @Matt 27: can’t remember the last time I found a public company’s shareholders who gave a rat’s ass about open source. Once your public, the rules change.

45. deb
    

    May 6th, 2008 at 11:36 pm

    don’t start this deal again. this is only for short term benefit for the shareholders.but it is disaster for the employees and in long term for both the companies..

46. Bright
    

    May 7th, 2008 at 1:07 am

    I just hope Yang will see good reason to permanently reject this offer because MSFT is just looking for a way to hold us (Internet users) to ransom.

    I advice all Yahoo! share holders to reject any amount that may be offered to them by Ballmer and his group because what ever amount they accept in return for their Yahoo! shares will be gone in no time when MSFT begins their monopolistic intimidation on the Internet again.

47. Sam B
    

    May 7th, 2008 at 3:04 am

    Ballmer should offer $25. It may be a discount to where Yahoo is now but it’ll be a massive premium to where the share price immediately sinks.

48. Tony
    

    May 7th, 2008 at 4:31 am

    Balmer will come back around as hostle when the price drops to $18

49. sean
    

    May 7th, 2008 at 4:32 am

    this deal is definitely bad for yahoo… yang should reject it anyway

50. Lynn A
    

    May 7th, 2008 at 5:31 am

    This deal is just one of many in our “temporary human LIFE”, and I just have no clue which way to guess this MAY go…but continue on! This IS life, as WE know it, yes?

51. Jason
    

    May 7th, 2008 at 6:21 am

    The complete board are morons and need to have a class action suit filed against them. This company is going down!!!

    They are getting what they ask for….At least my MS stock will be worth something now.

52. Erik
    

    May 7th, 2008 at 6:57 am

    I say blame the shareholders. The management of Yahoo isn’t the problem. The problem is the shareholders and Eric Jackson. They’re just whining about making money and the value of the company. Well, can’t they just use terrible microsoft products and suffer with it? I love Yahoo and their products. If Microsoft was about to take over Yahoo, I was willing to give up my yahoo accounts and never go on Yahoo ever again. I know I’m being baby about it but isn’t the same thing about shareholders being baby about the losing the bid from Microsoft. We need great products coming into this world today so screw Microsoft, lets move on and make better products than Microsoft.

53. Jerry Yang
    

    May 7th, 2008 at 7:01 am

    Your faith is disturbing

54. Tower of Hanoi
    

    May 7th, 2008 at 8:08 am

    Hail to Yang.. he co founded Y! ..and people can’t just take him away like that ..

55. Oli Burgess
    

    May 7th, 2008 at 8:40 am

    I’m just hoping that this is a negotiating tactic on the part of Ballmer. I use Yahoo! every day and think it would excel under microsoft’s good business management. I think that the deal is dead though - shame really, Google’s an evil bastard.

56. studimaus
    

    May 7th, 2008 at 10:05 am

    why? because he defended the company from being destroyed by microsoft. because he tries to give a future to the company. and being him i also would rather commit suicide than be murdered and than being taken to the cleaners by microsoft. for the being he seizes a chance, a minimal chance.

    all the best for yahoo! no microsoft!

57. rajit
    

    May 7th, 2008 at 11:30 am

    I am surprised too… how can they do such with Yang or lang or whatever

58. randommuse
    

    May 9th, 2008 at 8:55 pm

    You have to think that Yang’s “We need $37″ was negotiation code for “I’ll meet you somewhere north of the middle”. If he really thought he could get $37, he obviously would have started the negotiation with a higher number. I’m sure that he thought that if MS would bid $33, he could get them to around $35, which was not an unreasonable bet. But Ballmer called his bluff and walked on him. Now Yang is stuck having to explain why the stock is worth $37 as an independent company, while the rest of the investing universe thinks it is worth $26 (today’s price, which includes a premium from speculators who believe MS will come back at some point). Can all these investors be dumber than Yang? Or did Ballmer just outsmart him and deftly set the stage for shareholders to shoot him?