Yahoo!: Dirty Vile Gossip

Volatile trading days are nothing new for the shares of Yahoo!.

But the rumor mill is in overdrive as the as the Street works on figuring out who is piloting the ship:

Yahoo! Inc., leading global Internet company, today announced that the Board of Directors has appointed Jerry Yang, Yahoo! co-founder and long-time board member, as Chief Executive Officer. Terry Semel, current Yahoo! Chairman and CEO, will assume the position of non-executive Chairman and serve as an advisor and important resource for the company’s senior management team, while also working closely with the Board. The Board also named Susan Decker, formerly Executive Vice President and Head of Advertiser and Publisher Group, as President of the company. Press Release

A report this morning from a newsletter reporting that Terry Semel had resigned had the stock jumping at the open.  After trading settled down David Faber entered the fray. His comments mid- afternoon really lit a fire under the stock that held up into the close.

Although Faber qualified his remarks, he believes the looming annual Allen & Co. confab in Sun Valley will keep tongues a ‘waggin. Yahoo! might be mismanaged in the eyes of many, but it has remained the #1 internet site in the U.S.

The stock traded up on May 4th after media speculation proposed a partnership with Microsoft was in the works. Later remarks from Microsoft threw cold water on the speculation and the stock traded heavy going into last week’s well publicized annual shareholder meeting.

But the rampant speculation over the company’s future direction is likely to grow louder. Although Faber alluded to activist investors possibly getting involved, a quick perusal of the current institutional shareholder list does not offer many clues as to who it would be. Where are the usual suspects?

Yahoo!’s seemingly rich valuation might not be much of a stumbling block; prospective buyers no doubt think they could do a better job at monetizing the enormous traffic the site generates.

For now, the hot money might be thinking...$10 up and $3 down?
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Jerry Yang, CEO, blogs about his new responsibilities in the corner office
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Semel obituary courtesy of Valleywag
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The content containedrepresent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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