Yahoo's Yang throws jabs at Microsoft and Icahn

Updated at 2:20 p.m. PDT, with details about an opinion piece by Yahoo board member Gary Wilson in The Wall Street Journal.

After taking a one-two punch from investor activist Carl Icahn and Microsoft on Monday, Yahoo CEO Jerry Yang threw a few punches of his own in an interview in The Wall Street Journal on Wednesday.

Jerry Yang

(Credit: Yahoo)

Yang is facing a proxy fight with Icahn, who is seeking to unseat the board and oust the Yahoo co-founder and chief executive from his top-dog position.

In a counter punch, Yang characterized Microsoft as trying to "destabilize" the Internet search pioneer by issuing public support to Icahn and stating its willingness to renew its bid for all of the company, or just its search assets, should a new Yahoo board be put into place after the August 1 annual shareholders meeting.

In his interview with the Journal, Yang said:

I think that I can bring stability back to Yahoo, and I want to get on with building company. I think that the destabilizing by Microsoft has become more and more intentional. I am not happy about it.

Yang noted he has been perplexed by Microsoft's unwillingness to continue negotiations with the company if it wants to do a deal. He reiterated the company's stance that it is willing to look at any deal Microsoft wants to propose.

Microsoft, in its public statement Monday, said it had come to the conclusion the software giant "cannot reach an agreement" with Yahoo. The Internet search pioneer previously rejected Microsoft's sweetened buyout offer of $33 a share and declined its offer of a partial buyout of Yahoo's search business, noting the terms of the partial deal were not adequate.

No formal discussions between the two companies are currently under way, Yang said in the interview.

And Yang said any effort by investors to "trust" Icahn and his proposed investor slate would be "really a bad choice."

Yahoo board member Gary Wilson, meanwhile, offered up his two cents on corporate governance in an opinion piece in The Wall Street Journal on Wednesday. In the op-ed piece, Wilson advocates for keeping the role of CEO and chairman separate, in a move to avoid the "Imperial CEO" syndrome.

While the vast majority of Wilson's op-ed piece is of a general nature on this topic, he does, as one would expect, make reference to Yahoo.

The company's board of directors and Yang are both under extreme pressure by shareholders, of which a number of significant players are calling for their heads.

Wilson, in the op-ed piece, says:

I have also witnessed the benefits of separating the chairman and CEO roles as a director of Yahoo. Despite the mistaken impression left by some media coverage, the Yahoo board of directors is intensely focused on creating value for shareholders--and the separation of the chairman and CEO roles in 2007 has made the present situation involving Microsoft and other alternatives a shareholder-focused process marked by close board oversight of management. I am confident it will result in a good outcome for Yahoo shareholders.

The simple change I suggest to effect the separation of chairman and CEO--requiring that an independent director become chairman when a new CEO is named--would increase the rightful influence of ownership in the governance of American corporations, and lead to extinction of the Imperial CEO. This, in turn, would improve corporate performance and decrease the need for new, expensive and intrusive government regulations to control management excesses.

Hmm, wonder if Icahn will follow such advice should his slate win in its proxy contest...

[humanssssss]

Who say that Microsoft buying Yahoo is good for consumers? Consumers prefer competition in the marketplace. By Microsoft buying Yahoo, it decreases the competitive landscape to only two major players in the market. Prices will start to creep up as the choices for consumers will be limited.

Microsoft and Icahn intend to make a few buck off of killing Yahoo. Yahoo employees will be laid off and any competing products to Microsoft will be discontinued, search marketshare will go directly to Microsoft Live. This is going to be bad.

[geekazine]

Jerry Yang THINKS he can bring back Stability!?! He's had over 6 years to do that. Simple business practices that even I would have made and Yahoo would have been stable.

Yang had a chance. If Yahoo was a private company, then he could have driven it to the ground. But it's public and it's time for a change. PERIOD.

[Vegaman_Dan]

Wow. I'll give Yang credit- he's one to stick himself out into both the public and shareholder's eyes for ridicule. Looks like Yahoo has their fall guy all set up now. He's perplexed why Microsoft won't deal with Yahoo- perhaps because Yang has publically said he would fight any attempt by Microsoft to buy the company? Pick a story, Mr. Yang and stick to it. You can't be both yin and yang on this one.

[geekazine]

Jerry Yang THINKS he can bring back Stability!?! He's had over 6 years to do that. Simple business practices that even I would have made and Yahoo would have been stable.

Yang had a chance. If Yahoo was a private company, then he could have driven it to the ground. But it's public and it's time for a change. PERIOD.

[winstein]

I think Yang is too polite. Microsoft has no intention to buy Yahoo. Microsoft probably will pay Icahn to get rid of the Yahoo board and don't care if it actually buys the company.

This reminds me of the joke:

A pig and a chicken are walking down a road. The chicken looks at the pig and says, "Hey, why don't we open a restaurant?" The pig looks back at the chicken and says, "Good idea, what do you want to call it?" The chicken thinks about it and says, "Why don't we call it 'Ham and Eggs'?" "I don't think so," says the pig, "I'd be committed but you'd only be involved."

[BENet07]

Please, don't let Microsoft take over Yahoo!!!

As much as I realize the contribution that Microsoft has made, I also recognize that Microsoft is not a "people" company and neither is it user friendly, especially in the way that Yahoo! is.

Just look at the way they are currently trying to force their new operating system on their customers while it's still having various and sundry major flaws; and that's just the latest and one of the smallest issues. They are too arrogant and too uncaring about client issues for anyone to be comfortable with them taking over Yahoo! and keeping it a "people" company.

They wouldn't know how. They wouldn't know how to cater to the type of people who use Yahoo! and who are a totally different animal from the people who would use Microsoft under similar circumstances, if any could be found.

Selling Yahoo! or any part of it to Microsoft would be ruining Yahoo! for its clients and a travesty to all.

To each its place, and a place for each. Microsoft, leave well enough alone, Yahoo ! doesn't want you!!!!!

[john55440]

With Yang as CEO, Yahoo! will have the stability of a company with a permanently-low share price.

[fredtheviking]

I think Icahn and Microsoft are playing thier cards right. For them it's not personal, it just business. Now, I don't believe Microsoft has anything to gain by buying Yahoo and everything to lose... But what perplexes me is the behavior of currect Yahoo board. The company has been losing market share and has lost it's way in the last 6 years. Honestly, this is the best thing they could have had happen to them. An easy out, why not take it? Surely, Yang could start over again and find himself just like Steve Jobs did when he was forced to leave apple.

Honestly, I think Yang and the board is holding on to a dream and won't see what's in front them. Just sell the company to M$ and cut your loses. I mean there is little downside to selling the company and they just making fools of themselves right now. Just look at thier position, they can't hold on to.

[Kwasiowusu]

Microsoft is "forcing" their operating system on the public are they? Ummm.last time I went to Best Buy no one was forcing anyone to buy any Windows computer. There were plenty of Mac laptops on the shelves, and today, HP sells Linux computers. Consumers of their own accord, simply walk past the Mac computers, and overwhelmingly CHOOSE to buy Windows computers. This happens to be a free country. Now why don't you take that in your pipe and smoke that?

[someguy999]

Yang took the most profitable advertisement company in the world, overture and over 3 years killed it to the point where it needs google to continue to live.

Seeing through Yang became all of the easier once he pushed through a poison pill, which even the compensation committee and board disagreed about. He put that plan in to place well after the offer came. So basically either you'll pay us obscenely more than we're worth or we'll continue to kill the company on our own as we have been at the cost of shareholders.

Its easy for Yang to be smug, he's made his billions. It would be nice if he thought about the little shareholders whom haven't seen the performance he's been constantly promising. by your own accords with the statement "I think that I can bring stability back to Yahoo", yahoo is in serious trouble ... you ran the show... and ran it clearly poorly. If he wants to pay out shareholders for his mismanagement personally, than I'll stick with him otherwise time for a new chief.

[Digital_2008]

This is simple for me as well as others I know. Yahoo has slid downhill, simple. But Microsoft is not any better.

I am one who likes competition. If Microsoft does buy Yahoo, then I am done with Yahoo and I will delete my account and all services with them. Microsoft wants to destroy Yahoo and take out competition, they are a business and it is normal business practice these days, especially with Microsoft.

Get Microsoft out of the picture and then take care of replacing Yang or the board, etc, and make Yahoo better. But that is such a simple solution it will never happen.