Yahoo Inc. (NASDAQ:YHOO) co-founder Jerry Yang resigned abruptly from all his positions at Yahoo yesterday. Apparently, investors love the news because the stock bumped up more than 2 percent in today’s trading. His departure is viewed on the Street as a catalyst for speeding up the ongoing restructuring of Yahoo. Investors are also high on the possibility of a major inflow of private equity money or selling a chunk of the Yahoo’s stake in China’s Alibaba.
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The resignation also helps avoid an expensive proxy battle in the context of a broader board shakeup. Yang’s departure also comes about a month before annoyed shareholders can elect rival directors to Yahoo’s board.
Yang said in his letter to the board chairman he was resigning to pursue other interests outside of Yahoo. He also expressed enthusiasm about the choice of Scott Thompson to lead the company as CEO.
Yang’s exit is likely to soothe dissatisfied shareholders who have long felt he lacked personal vision and blocked investment deals such as ones with Microsoft (NASDAQ:MSFT) that could have been hugely beneficial for Yahoo.
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