Thursday May 29, 06:50 AM
Yahoo CEO says co not 'under siege', mulling Microsoft collaboration UPDATE
(Adding further comment, details on Microsoft (NASDAQ: MSFT - news) takeover, possibility of collaboration, potential beyond search)
CARLSBAD, Calif. (Thomson Financial) - Yahoo Inc (NASDAQ: YHOO - news) . CEO Jerry Yang rejected the image of his company as 'under siege' on Wednesday, stressing executives are rallying to streamline Yahoo's offerings and make it more relevant to consumers and to advertisers.
Yang, speaking at The Wall Street Journal's 'D: All Things Digital' conference in California, also said Microsoft Corp., which withdrew its takeover offer for Yahoo earlier this month, is 'no longer interested' in buying his company but is considering 'other partnerships'.
'Microsoft is no longer interested in buying the company and they are discussing various other partnerships with us,' Yang said, echoing comments made the prior evening by Microsoft chief executive Steve Ballmer. 'We are listening.'
Yang implied the sparring between the companies while Microsoft's $47.5 billion offer was on the table has given way to talks aimed at finding a way to work together.
Microsoft could have taken a 'much more hostile' tact and tried to oust the Yahoo board of directors that rebuffed its advances, according to Yang.
Yahoo faces the threat of mutiny from shareholders unhappy with the way its board handled Microsoft's offer, but Yang stood by his handling of the deal and painted a bright future for the internet pioneer he co-founded.
'The perception of us being a company under siege is just not accurate,' said Yang, who deflected repeated questions about what lies ahead for the company, where he returned as CEO last year.
Yang and Yahoo president Susan Decker said the company is reorganising around four pillars: home page, search, mail and mobile services.
'The essence of Yahoo is being defined today,' Yang said. 'We have to be incredibly relevant to the consumer. We want you to start your day at Yahoo.'
Later, he pleaded for time to turn around the slumping company.
'I know people want to see results,' he said. 'But I think we're starting to show Yahoo can be on this path to being a different entity.'
Yang faces a looming showdown with activist investor Carl Icahn for control of Yahoo's board. Icahn, hoping to channel shareholder discontent, has nominated a slate of candidates to replace the current board of directors -- a process known as a proxy fight -- in an effort to arrange the marriage between Microsoft and Yahoo.
Yang let out a single harsh snort at the first mention of Icahn's name during his appearance but did not comment on his efforts. Instead, Yang defended his handling of the failed Microsoft talks, saying he was committed to building value for long-term shareholders even at the expense of short-term gains.
He blamed Microsoft for ending the deal, indicating regulatory and other concerns -- namely price -- played a role.
'We did not walk away from the proposal -- Microsoft did,' Yang said. 'We were willing to do the deal on the right terms.'
In an interview with the Fox Business Network, News Corp. CEO Rupert Murdoch asserted Yang never intended to succumb to Microsoft. Murdoch has a unique vantage point on the Yahoo-Microsoft talks because News Corp. explored possible business partnerships with both companies during the negotiations.
'(Yang) founded this company, he loves it, he loves running at,' Murdoch said. 'I think he can be criticized and he is being criticized by his shareholders. For letting his emotions stop him (from) taking what was a very, very generous offer.'
Murdoch said he doubts News Corp., which also owns the network where the interview aired, would now do a deal with Yahoo because the price would be too high.
Yahoo also has been exploring a possible partnership that would allow internet search leader Google Inc (NASDAQ: GOOG - news) . to sell some of the ads that appear alongside the results users see when they run searches on Yahoo's website. A two-week trial completed last month indicated Google's technology would help to boost Yahoo's profits and perhaps its stock price.
But any alliance between Yahoo and Google would face antitrust obstacles because the two companies combined control more than 80 percent of the U.S. search market.
If Microsoft were to negotiate a similar partnership with Yahoo instead of trying to buy its rival outright, it might not face the same antitrust problems because Google would still control more than half the market.
Yahoo's potential to make money online stretches far beyond search, said Decker.
Internet search accounts for only 10 percent of the space for placing online advertising, and Yahoo boasts 500 million people that routinely use its properties.
'It's an enormous asset,' Decker said at the conference. 'It's undervalued. We want to do more with it.'
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
