http://online.wsj.com/article/SB10001424052970204331304577143151032301964.html?mod=WSJ_Tech_LEFTTopNews
Yahoo’s new CEO, Scott Thompson has had his company meeting and told all of Yahoo’s employees that Yahoo needs to be “world class” and that Yahoo will fund innovation.
He did not say anything that was not expected.
The question now is will he be able to move the company in a direction that is profitable. The challenges Mr. Thompson faces are massive: • A board that is accountable for the mess the company is in and still will not take responsibility for the mess the company is in. • A board that has a founder who I believe is conflicted with Yahoo. Read past postings. • A board that has a history of making very bad decisions
If Thompson disagrees with Jerry Yang, I am fairly certain Yang wins and Thompson loses the argument. Same thing goes for any disagreement between Thompson and Yahoo Chairman Roy Bostock.
The fact that Thompson is a technologist without turnaround experience is just icing on the cake. In other words, it makes you wonder why Bostock and Yang even selected him. I guess they wanted someone who would do what he is told to do.
The fact that Thompson is on the board is meaningless. The true test is whether or not Roy Bostock and Jerry Yang listen to him and fully embrace Thompson’s ideas and opinions. My best guess is no to both.
The reality is Thompson will likely not be able to achieve anything positive with the existing board.
This company is beginning to look a lot like RIM. The company is not only an example of management failure but also an example of disastrous corporate governance.
So, I still ask the question "What does Yahoo want to be?" From the choice of CEO do they want to be a technology company (innovator) or what the investors expect a Media company?
Good point. The company is not only an example of management failure but also an example of disastrous corporate governance. It is beginning to look like RIM.
