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Founder Severs Ties to Yahoo
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The resignation of Jerry Yang, co-founder of Yahoo, from his positions at the company on Jan. 17, 2012. Yahoo hired a new CEO, Scott Thompson, from eBay's Pay Pal unit n 2011. Yang started Yahoo with David Filo. They setup "David & Jerry's Guide to the World Wide Web," a list of favorite websites, as computer science students at Stanford in 1995. What followed was a trajectory similiar to the one observed today for Facebook- by 1999 the company was valued at $120 billion in the dot com bubble. A decade later Google, a newcomer with a search algorithm, replaced Yahoo as the most widely used search engine. Yahoo and its peer site AOL from the 1990's never recovered from the technological change in the internet with broadband and a new generation of search engines. Yang holds a 3.8% stake in Yahoo. Yahoo has a 40% stake in Ali Baba, which was formed when Yahoo turned over its Chinese operations to Ali Baba in exchange for a large stake in operations. Yahoo is planning to sell its stake in Ali Baba.
Jerry Yang- co-founder of Yahoo
05/27/2010
The resignation of Jerry Yang on Jan. 17, 2012, marked the end of a role that spanned two decades. Yahoo set up Yahoo during the early days of the Internet in 1995 as a basic search tool to navigate the web. Yahoo was replaced as the main search engine by newcomer Google which used an algorithm based approach. Efforts to set a recovery at Yahoo in motion failed when CEO Carol Bartz resigned, followed by the exit of Yang. Like America on Line (AOL) which provided the basic internet connection service in the early days of the web only to be replaced by phone and cable companies with new broadband service in the next decade, Yahoo has never recovered.
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