As Yahoo scrambles to deal with the Microsoft bid, the board is splintering into two camps, Peter Lauria and Zachery Kouwe of the Post say: an emotional one, headed by Jerry Yang, and a cool-logic one, headed by new Yahoo chair Roy Bostock.
The emotional camp, headed by Jerry, Bobby Kotick (Activision CEO), and Eric Hippeau (Softbank partner) will reportedly do anything to avoid selling to Microsoft. The harsh-reality camp, headed by new board chair Roy Bostock and billionaire Ron Burkle, worry that Jerry is so intent on keeping his baby away from the evil empire that his judgement is being warped. As Jerry runs out of options, Lauria and Kouwe suggest, the Bostock faction is gaining the upper hand.
It’s certainly easy to believe that the board woud be splitting this way. We understand what Jerry’s so passionate about, and we wish there were an easy way out of the room. But we have yet to hear a plan that will persuade Yahoo shareholders to willingly take an instant 40%+ hit to their holdings on the hope that Jerry will be able to deliver even more value over the next couple of years.
In the past few days, as Yahoo’s alleged options have been bruited and examined, the momentum has shifted back to Microsoft. And a splintering of Yahoo’s board is good news for Redmond.
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