Yang says he may sell Yahoo if price is right

(Agencies)
Updated: 2008-05-07 10:23

Yahoo Inc Chief Executive Officer Jerry Yang, criticized by some investors for rejecting Microsoft Corp's $47.5 billion takeover bid, said he'll consider selling to the software company or another bidder for the right price.

The headquarters of Yahoo Inc. is shown in Sunnyvale, California May 5, 2008. [Agencies]

Yang will continue a strategy to boost Internet advertising sales and is speaking with other companies about ways to increase Yahoo's value. While Yahoo isn't for sale, the company would listen "should somebody else come back someday and want to buy the company," he said after the stock sank 15 percent.

"We've always felt the Yahoo platform has been undervalued or underappreciated by the marketplace," Yang said. "Our most important goal is to make sure we have a long-term competitive position."

Yang may find his job in jeopardy if his strategy fails or he can't boost the stock in a few months. Investor Larry Haverty of Gamco Investors Inc wants progress by October. Analyst Ross Sandler of RBC Capital Markets said Yang will face scrutiny during the July annual meeting. An idea to outsource more search advertising to Google Inc is already drawing criticism for risking customer defections to the competition.

"They'll be calling for his head then if by the end of the year there haven't been some substantial improvements," said analyst Brian Bolan of Jackson Securities LLC in Chicago, who recommends selling Yahoo shares.

"Certainly he should be concerned about his job, and the shareholders are going to revolt at some point."

Yahoo, in Sunnyvale, California, passed up an offer of $33 a share, saying the company is worth no less than $37, Microsoft CEO Steve Ballmer said on Saturday.

Yahoo rose $1.10, or 4.5 percent, to $25.47 as of 11:25 am in Germany yesterday from its NASDAQ Stock Market close. The stock on Monday fell the most in almost two years. Microsoft climbed 36 cents, or 1.2 percent, to $29.44 in Germany.