Instant view: Yahoo co-founder Yang is out, shares jump
(Reuters) - Yahoo Inc co-founder Jerry Yang, who started the company in 1995, has quit the board of the struggling Internet company.
His abrupt departure comes two weeks after Yahoo appointed Scott Thompson to serve as its new CEO. Yang is leaving the company's board of directors as well as all other positions within the company, effective Tuesday, the company said.
HERMAN LEUNG, ANALYST, SUSQUEHANNA FINANCIAL GROUP
"It probably increases the likelihood of a transaction happening. It makes it more flexible for a potential transaction to happen. Some investors could view Jerry as a thorn on the board.
"What i do find surprising is he resigned from all three boards: Yahoo Japan, Alibaba as well as Yahoo.
"I had thought that Jerry Yang was a lifer at Yahoo ... What's more interesting is what he plans to do next. We don't know what that is. Some people are speculating whether a PIPE deal is off the table because Jerry is no longer part of the process, but I think that actually could increase the chance of a PIPE deal because some private equity investors might view Jerry as a potential thorn in a transaction.
"Without him on the board, this could smooth a potential transaction. What that transaction is, is any of our guesses right now.
"We're sticking to our thesis. I think it still takes awhile. A transaction is obviously more complicated than anybody thinks it is. We said that six months ago, and we're saying that again right now." Continued...