Wall Street Analysts: Yang’s Resignation Means Progress for Yahoo
Jerry Yang, former CEO and co-founder, announced Tuesday that he was resigning from Yahoo (NASDAQ:YHOO) and would no longer have any role in the company. Analysts across the board are saying that Yang’s departure is great news for the on-line company and its shareholders. Yang’s absence could be a catalyst for the sale of the company.
The Hollywood Reporter quoted Stifel, Nicolaus analyst Jordan Rohan who wrote, “This represents progress from the perspective of shareholders looking for a sale of the company, as the board reportedly had been pushing for alternative scenarios, including the sale of a minority stake to private equity.” He continued by saying, “This resignation increases the chances of an outright sale of the company, even if it happens in two stages, with the cash-rich split-off of Asian assets first.”
Yahoo’s stock performance has echoed analyst’s sentiments as it rose after-hours on Tuesday and opened higher on Wednesday. Ken Sena, an analyst at Evercore Partners said, “The change clears the air a bit between the board and investors, which should help incoming CEO Scott Thompson gain some investor receptiveness,” per The Hollywood Reporter.