You're watching...
Evercore's Ken Sena on Yahoo's CEOJerry Yang stepping down, and what this means for the company and its' investors.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- at that.
Well yeah share is a little bit less affordable today moving higher after co-founder Jerry Yang stepped down from the company.
It comes just two weeks after Yahoo! hired former -- -- president.
Scott Thomson as its news CEOs so what should investors -- -- now that Jerry Yang is out.
Joining me is -- scene and who -- -- at Evercore Partners he's director of equities there.
Ken thank you for joining us today because -- -- certainly it's it's clear.
And investors are happening -- -- mildly positive reaction to the news and Jerry Yang is out but I guess.
The bigger question is what does this signal that the board may be leaning towards in terms of more -- -- you know.
I think it's difficult to read at this point I think that's why some of the reaction has been somewhat tempered -- -- -- the stock -- up about 3%.
I think overall -- positive.
But I think the skepticism that some investors have is that this could simply be a show of support for.
The new CEO who's coming in and say look we're trying to basically.
Eliminate some of the baggage that you're walking into by letting shareholders know that we are listening to them that there is some changes -- board level.
Hungarians and he said baggage -- -- -- like a -- they're already well I I think that you know it is it's it's stems back I think to them turn down the Microsoft deal yeah 44 billion dollars at into the CEO -- He still has been -- very much by many investors.
As a roadblock to potentially you know selling smaller part of the company.
-- what about all.
Other potential changes on the border reshuffling -- a management shake up -- mean certainly new blood is in order is due at that company.
-- they can come from a lot of different sources where you think that we're gonna see momentum net.
Well I think you've seen the management shake up you know they have a new CEO -- -- -- you know first week on the job.
-- -- the board level it's still a question -- I think that you know there's been reports all things digital reported that you know she believes for more directors wolf wolf followed Jerry.
I don't know that to be true but I think that if he did start to see some additional shake up at the board.
I think that investors are really sort of step in and say -- -- deal is about to happen I think that the negative in terms of Jerry stepping down now is.
It feels as though there's a setback in terms of talks that have been occurring.
That they're almost at ground zero given -- although you know they set up a strategic review committee back in September to explore options.
What do you think -- to nickel lists for Yahoo! I mean where is it trying to go who's -- trying to be it seems and it really has lost its way in terms of identity.
In terms of brand serve awareness and name -- and it's no longer in the iconic brand that it once was.
Do you think it will ever regain its status into what sort of this new chapter minus Jerry Yang going to look like is it -- -- still be a display advertising company isn't going to morph into mobile.
Advertising company mean where's it gonna go next to see that growth.
Well I think from the from the -- standpoint.
Yes Scott does bring a lot of its expert expertise in mobile.
I think that will be a focus for them but it is hard to imagine the core business really transition.
To something other than what really has.
Which I display -- which is display advertising and I think the the challenge for them in terms of what will Yahoo! be.
You know roughly you know 50% to two thirds of the value of the company right now really settles settles in those Asian -- yeah I think there's a huge push by investors.
Who really feel that in order for Yahoo! to move forward it really is to separate into these.
I mean I like those some of these things that are sort of productive and and -- focus a company so.
What's next I mean EU you talk about these Asian accent is that really sort of the key to unlocking value Orix.
Is an outright sale still on the table for this company.
You know I think it's harder to do an outright sale given the collection assets as they currently exist I think if they could do you know we've we've written a lot about the possibility of -- cash -- split I think there's several interest of parties.
To do that.
But I think until that happens and you monetize some of those Asian assets I think it really you won't see a lot of suitors wanna step and I -- by the entire company.
You know Yahoo! -- just a slimmed down version of the core business.
You know yes I think that there would be new buyers who potentially wanna step in and look at it.
In five years from now can give me prediction is -- -- gonna be sorted out as Yahoo! gonna be a bigger better stronger company.
Good question I think that.
That's a tough on I don't I don't know that I -- you don't know yeah and I think that's -- a lot of investors are feeling and -- a step in the right direction but there is a lot of work ahead for this company and stories CEO -- story structure house absolutely -- CNET Evercore Partners thank you very much being with us to ship.
