One of Yahoo’s biggest long-term investors, Capital Research and Management, which owns more than 10 percent of the company in two different funds, is leaning toward voting for the slate proposed by activist shareholder Daniel Loeb of Third Point, in the wake of the controversy around the botched bio of its new CEO Scott Thompson.

“Having a CEO with that hanging over his head is really a problem going forward,” said one person with knowledge of the situation. “It’s hard to pretend this is not a problem.”

While sources said Yahoo’s longtime institutional investor — which currently holds large stakes via its Capital Research Global Investors and Capital World Investors funds — is not likely to go public with their voting choice until close to the annual meeting, which will take place sometime this summer.

But its fund managers have told key Yahoo board members of their grave concerns over the situation.

Ironically, in the last proxy fight showdown with Carl Icahn, Capital removed its support of Yahoo’s slate too and was an important influence to many major changes at the company.

Such a move is problematic for Thompson, since the rejection of another big shareholder at its upcoming annual meeting will keep the unusual issue and right in the middle of a noisy proxy fight.

A special committee of the Yahoo board is investigating the situation — in which a fake computer science degree somehow got on the resume of the former president of eBay’s PayPal payments unit and later into official Yahoo regulatory filings.

The problem was uncovered last week — unfortunately for the Silicon Valley Internet giant — by Loeb, who has been banging away on Yahoo since.

A trio of independent Yahoo directors is looking into the mess, with a focus on how that happened, whether anyone at Yahoo knew of the inaccurate bio and how it got there in the first place.

Also of great concern, is how Thompson could have not seen the error in the many years it was on the Web site of eBay and also how he approved a bio that had the inaccuracy in it when he was hired by Yahoo in January.

Worse still, in a 2009 interview, he clearly did not say he did not have such a degree in with a radio show host when directly asked about it.

“It’s a little hard believe an executive of this level would have missed such a thing, when he had so many opportunities to fix it,” said one source. “And, if he did overlook it that many times, that’s a problem too.”

In fact, according to a report earlier today by Business Insider that I also confirmed, Thompson told employees today in two separate meetings that he did miss the error since it was placed there — inexplicably — in 2004. In the meeting, he blamed a low-level headhunting staffer who added it incorrectly, an error that then proliferated.

Thompson also said he did not provide a resume to the company in his hiring process — say whaaaat, but true — although this still does not absolve him from the original error.

As to the interview: Thompson said he did not want to be rude and correct the host of TechNation, Moira Gunn, after she clearly asserted to him he had a computer science degree as part of a question on his qualifications. Others present at the meetings said he said he did not hear the question.

But, in an video interview with me yesterday, though, Gunn said she and Thompson discussed a computer science education in a way that left the clear impression that he had obtained one.

While Thompson’s excuse may beggar the imagination of some, it’s his story and he’s sticking to it. In all seriousness, his complete lack of willingness to take responsibility for the error — even if it was not his fault — itself is a little startling.

Because what’s not clear is how the bio was miraculously correct in eBay’s official filings and also if it is plausible that he never saw the mistake.

Numerous communications execs at Internet companies told me that it was unusual for a high-level exec not to pay close attention to information that went out about them, especially in legal filings. In addition, just as many execs are made to check and swear on their bios that go into such documents.

In fact, it was Thompson’s job to make sure the things written about him were correct at all times. As CEO, as a major Silicon Valley player pointed out, he is required by federal law to personally certify Yahoo’s Securities and Exchange Commission filings. Violations of these rules carry financial and also potential criminal penalties.

Sources said the board is worried about that credibility issue too and it puts Thompson in an ever-dicier position. Noticeably, the board has yet to make a public statement of support for him on the issue.

Also a major worry for the directors is the mostly negative response to the situation from Yahoo employees, who are deeply upset that Thompson’s error was not caught and that he might not be treated in the same way as anyone else who turned in a false resume, whether it was by accident or not.

A Yahoo spokeswoman told me last week that there was also support internally for Thompson, but in many dozens of interviews I have done with Yahoo employees and a continued monitoring of internal bulletin board, the tone is not in his favor by any means.

Like I said, it’s a dicey time to be Scott Thompson right now.

RELATED POSTS:

• Yahoo’s Parting With Thompson Will Be for “Cause” (a.k.a. CSLie)
• Ross Levinsohn’s Yahoo Plan: Back to the Future
• Here’s New Yahoo CEO’s First Note to Troops! (The Leaking-Internal-Memos-to-ATD Policy Remains in Effect As Usual)
• Yahoo Officially Confirms ATD Report on CEO Changes and Proxy Settlement
• Meet the Man I Call “The Hair”: The Video Stylings of Yahoo’s Newest CEO Ross Levinsohn
• Will Thompson’s Ouster Mean a Yahoo-Facebook Patent Settlement Too?
• Exclusive: Yahoo’s Thompson Out; Levinsohn In; Board Settlement With Loeb Nears Completion
• Heidrick & Struggles Slaps Back at Thompson’s Yahoo in Blame Game Over ResuMess
• Is He In or Is He Out? Crunchtime for Scott Thompson at Yahoo.
• Not So Scott Free? Yahoo’s Other Big Shareholder — Cap Re — Leaning Toward Supporting Loeb Over Thompson ResuMess.
• Tech Nation’s Gunn Says She and Yahoo CEO Discussed Their CS Degrees Before 2009 Show (Video and Audio)
• Loeb Calls Again for Thompson Firing From Yahoo, as Former eBay Boss Supports Him
• Place Your Bets: Will Loeb Drop Another Bomb on Yahoo at Vegas Confab Later Today?
• Exclusive: Yahoo Director in Charge of Botched CEO Vetting to Step Down From Board
• CEO Says Sorry to Yahoos for Borked Bio “Distraction” — But Will Mea Culpa Work Without an Apology for Error? (Memo)
• Buffett Comments on Trust Issue in Yahoo CEO BioGate: “You’ve Got a Problem”
• Loeb Lobs Lawsuit, as Expected, at Yahoo’s Borked Bio Mess
• As Yahoo CEO Reaches Out to Top Staff, Board Meets to Weigh “Options” (I.E., Deciding Who Gets to Take the Borked Bio Blame)
• Yahoo Should Expect Incoming Lawsuit Lobbed by Loeb Tomorrow on CEO Hiring
• They Shoot Yahoo CEOs, Don’t They? But Not Without a Really Smoking Gun and a Much Stronger Board.
• Yahoo’s Thompson Asks Employees to “Stay Focused” — Except Not on Him
• In 2009 Interview, Yahoo CEO Does Not Deny He Has a CS Degree, and Calls Himself an “Engineer” (Audio)
• Yahoo’s Board Will “Review” Resume Discrepancy of CEO
• How Did a Phantom CS Degree Get on CEO’s Bio in SEC Filings? Yahoo’s Not Saying.
• Yahoo’s Response on CEO’s Computer Science ResumeGate: “Inadvertent Error”
• Dan Loeb Alleges “Discrepancies” on Yahoo CEO Scott Thompson’s Resume Related to Computer Science Degree

Let’s put this in the simplest terms: Yahoo cannot spend the next half year in any kind of testy proxy battle with activist shareholder Daniel Loeb.

Not shouldn’t. Can’t.

Having closely covered the last goat rodeo in 2008 with corporate troublemaker Carl Icahn — which ended in big shareholders dinging the board badly and the controversial activist joining it — I can say definitively that the experience damaged the Silicon Valley Internet company in ways that are still resonating.

Angry shareholders (whose anti-Yahoo votes were initially miscounted in a stunning bumble), distracted management, media story after story about the fight, it eventually led to the departure of then CEO Jerry Yang by the holidays of that year, a rejiggered board and a new CEO, Carol Bartz, and fervent promises of change and turnaround.

Fast forward to today: Bartz was ousted in the fall of last year, a newish board is coming in, there’s another new CEO and, of course, more fervent promises of change and turnaround.

This is like the movie “Groundhog Day,” except not nearly as funny.

Speaking of funny, a Heard on the Street in The Wall Street Journal yesterday actually went fabulously snarktastic with its headline on Yahoo’s current tussle with Loeb of Third Point: “Is Yahoo Ready for a Loebotomy?”

Heh.

Opening with the line, “How many activists does it take to screw in Yahoo’s light bulb?,” the piece went on to ponder back and forth the impact of Loeb on the already dicey situation at Yahoo.

It concluded: “Yahoo investors shouldn’t expect a quick fix whoever the directors are. But, given how long Yahoo has been struggling to gain traction on its own, having a champion of shareholder value on the board can’t hurt.”

Nope, it can’t, as long as said investor wants to help find the successful fix previous Yahoo leaders have been heretofore unable to.

Another commentary in the Journal, “Dealpolitik: The Yahoo Paradox” took an opposite tack.

“Even giving Mr. Loeb a single seat could further weaken Yahoo. As a gadfly Mr. Loeb could challenge each board decision,” it read.

Actually, given this board changes direction more often than Republican presidential candidate Mitt Romney — witness the now non-talks with its Asian partners this past week and, before that, with private equity investors — I am not sure Loeb would change the status quo all that much if he threw one tantrum per meeting.

So, which is it? Will a settlement with Loeb lead to more trouble or will it create the kind of change that Yahoo has long needed and never gotten?

At this point, I have no idea — but I do know that a fight between Loeb and Yahoo is good for no one, except lawyers and perhaps page views on this site and others.

And, frankly, I don’t want them.

That’s because — even as the rest of Silicon Valley reinvents and innovates more aggressively than ever these days — Yahoo and its still deeply committed employees will be caught up in more fraught financial mishegas and machinations and will be unable to do anything to attract new talent and begin to truly fix itself and its products in the profound ways it needs to.

And new CEO Scott Thompson — who seems intent on setting a new course for Yahoo in a non-advertising arena — will be inevitably distracted, no matter the also inevitable protestations that he will not be.

And, it won’t just be Loeb who is hovering — there is no doubt a panoply of other interested outside investors still waiting in the wings to see what tasty bits of Yahoo might come available if the crisis deepens.

It’s certainly not come to roadkill yet by any measure. But it’s not a recipe for hitting the ground running, either.

Here is a video of me talking about the problematic situation on WSJ.com’s “Digits” online show:

When you own a large chunk of a major Silicon Valley Internet company, it’s probably not a surprise that you want to come to the center of the tech world to have a look around.

But Yahoo — of which Third Point’s Daniel Loeb owns over five percent — is unlikely to get a visit from the activist shareholder, who is in California this week.

Several sources said he has contacted many former Yahoos and other tech execs for meetings in the Internet heartland to chitchat about digital issues.

And, of course, search for possible board members for an alternate slate of directors, in case he decides to wage a proxy fight against Yahoo.

The earliest nominations for directors can be submitted is February 24 for those “shareholder proposals not intended for inclusion in proxy materials and for nomination of director candidates,” according to Yahoo’s corporate bylaws on such matters.

Loeb then has a month after that to submit a competing slate. In addition, many of Yahoo’s major investors are mulling backing Loeb if he initiates a battle for control of the company.

But it’s not a definite move as yet. The New York-based investor has not decided whether he will take on a proxy fight, sources said, given he has yet to assess Yahoo’s new CEO, former eBay exec Scott Thompson.

Thompson was president of the online commerce site’s PayPal payments division.

But while there is a formal process, you will hear a lot of noise coming long before that, unless Yahoo gives Loeb board seats to quiet him down — which is unlikely but possible.

Such an ugly fight is not one Yahoo can afford to have, and it has already shown some cloddish sensibilities in its response to a recent letters by Loeb asking for the ouster of its Chairman Roy Bostock and co-founder and director Jerry Yang.

But given how badly the last Yahoo shareholder tussle with Carl Icahn went, another proxy battle could be deadly, and might drag on through the first half of 2012. In his Yahoo tussle, Icahn ultimately got three seats on the Yahoo board, but eventually went away with everyone the poorer.

And no one wants a replay of that.

I hate to use a personal story to make a professional point — but when I was in the hospital recently, after suffering from a mini-stroke, I got an important piece of health advice that, oddly enough, applies perfectly to Yahoo, the Silicon Valley Internet icon I cover very closely.

I know, I know, but listen up …

When I was close to going home, one of my doctors told me I had to make sure I paid attention to any signs that might indicate a recurrence. The issue around any possible future ischemic attack taking place, he said, is speed in getting critical care once any unusual symptoms become apparent, such as numbness, tingling, confusion and cognitive difficulty.

That’s because every second of delay translates to increased damage to cerebral cells that could badly impact speech, movement and worse.

“Remember,” the doctor intoned with great and very appropriate gravity. “Time is brain.”

Yes, indeed it is — for me, and also very much so for Yahoo these days.

Leaving aside my own mortality, one of the most important issues going forward for Yahoo’s long-hoped-for revival will be how quickly the company moves in the next month, in what has so far been a lugubrious and rumor-heavy process to figure out its strategic plan in the wake of the firing of CEO Carol Bartz in early September.

That means — going into a major holiday season — Yahoo has about 30 working days to make what has to be a complex and multiparty deal. It is likely to include private equity firms, big companies, Asian partners, investment bankers, major shareholders and scrutiny from the media, in an effort that is approximately akin to herding cats.

This from a board that has often moved with snail-like reflexes in the midst of much more minors crises, and has shown a talent for disaster.

So, while speed is sometimes the enemy of reason, in this case, it is now more necessary than ever before.

There are three key reasons why Yahoo’s leaders have to perform quickly now, each of which could spell even more turmoil for the long-troubled company, if botched.

The first is the possibility — actually, the probability — of a proxy fight that might begin informally just after the new year.

That’s when you could start hearing from someone like activist shareholder Daniel Loeb of Third Point — who has been vocal about ousting Yahoo board members, including co-founder Jerry Yang. Yahoo directors are fully aware that he is eyeing this ugly option, which will include readying an alternate slate of directors.

According to a Yahoo spokeswoman, the earliest nominations for directors can be submitted is February 24 for those “shareholder proposals not intended for inclusion in proxy materials and for nomination of director candidates.”

But while there is a formal process, you will hear it coming long before that, unless Yahoo gives Loeb board seats to quiet him down — which is unlikely but possible.

Such a noisy fight is not one Yahoo can afford to have, and it has already shown some cloddish sensibilities in its response to a recent letter by Loeb — who has many more shares than Yang, and should still be accorded a certain amount of respect, no matter what he says.

Given how badly the last Yahoo shareholder tussle with Carl Icahn went, another proxy battle could be deadly, and might drag on through the first half of 2012. In his Yahoo tussle, Icahn ultimately got three seats on the Yahoo board, but eventually went away with everyone the poorer.

Second, Yahoo will report its fourth-quarter earnings in late January, which will likely continue to show weakness in key sectors of its business. While interim CEO Tim Morse is doing a laudable job given the shaky circumstances, drops in advertising revenue growth, engagement and search are not anything Yahoo can keep making excuses for.

While it is likely the company’s beleaguered operating execs will pull out the stops to make the numbers look better — a new game I like to play is “how many homepage ads can they jam in there at the quarter’s end?” — it’s no panacea for the kinds of dramatic and even drastic changes that new ownership will have to make, sooner than later.

And, speaking of beleaguered, perhaps the most important reason that Yahoo has to get the lead out and clarify its situation is due to one consistent thing about the company: Talent attrition and employee fatigue.

Speaking to one exec after another in recent weeks, it is dead clear that Yahoo is increasingly hard-pressed to hold on to the best of its current employees, or to attract any terrific new ones.

The impact on product innovation, morale and more is obvious.

One exec who has long been one of the more cheerleader types for Yahoo — often calling me out in the past for being too negative on the company’s prospects — has recently turned weary, cynical and even depressed about the future — so much so that I now find myself bucking up the worker.

“You can’t hire anyone, since you can’t tell them honestly who their bosses might be in three months,” said the staffer. “And you can’t look anyone who works for you now in the eye and tell them it will turn out right in the end, either, given the track record so far.”

Indeed. And, more than any other factor that could hurt Yahoo in the competitive tech sector, brain drain is what will always get you in the end.

The unicorn is named Unicarl Unicahn, and his approach to save RIM is being reported widely by blogs and Twitter, so it must be true.

Read the rest of this post on the original site »

In the end — the bitter end, that is — there really is no good time to fire someone.

But the timing of the ouster of Carol Bartz as CEO of Yahoo is one of the more curious things about the corporate mishegas at the Silicon Valley Internet giant of late.

That included drastically moving up the clock on Bartz, which was not part of a plan until recently. In fact, several sources were told only last month by Yahoo board members that evaluation of her status — her contract ended at the beginning of 2013 — would not take place until the end of 2011.

That obviously changed.

And, because it is Yahoo — which never met a crisis situation it could not hopelessly complexify — there are numerous and conflicting accounts about the reasons it was done so quickly and abruptly.

They include the board’s feeling that Bartz had not responded to their requests for a credible strategic plan; worries that she would not ever meet annual performance goals, including improving its stock price; upcoming weak third-quarter numbers, which will continue a troublesome downward trend in Yahoo’s key advertising business; and, perhaps most intriguingly, the need to make a move before it was revealed that another activist investor, this time Third Point’s Daniel Loeb, had decided to target Bartz and the Yahoo board.

One thing is certain: The firing of Bartz was messier than it needed to be, mostly because several sources said she was caught unawares.

“She did not know it was happening, even if she probably should have seen it coming,” said one person familiar with the situation. “And she had no allies at the company to warn her, either.”

Indeed, at the time Bartz was fired over the phone by Chairman Roy Bostock — who had until late this summer been her fervent supporter — she was set to appear at a high-profile Citigroup investor conference in New York.

“It had to happen then, because you can’t put a CEO in front of investors and analysts and then fire her soon after,” said one person close to the situation.

Actually, former Yahoo CEO Terry Semel stepped down only days after appearing at the company’s annual meeting and telling the gathering he was in for the long haul.

The Loeb problem also played a part. According to several sources, while Loeb did not surface until after Bartz’s firing, several directors and Silicon Valley players were aware of his plans to target Yahoo.

While Loeb was not the more heavyweight threat that activist investor Carl Icahn had been in the past, sources said he was planning to call for Bartz’s firing, as well as a board re-do.

The large part of the reason for letting her go finally, of course, centered on not meeting performance goals set by the board.

While the overhaul of a hairball of systems and a rejiggering of staff was quickly done by the longtime and experienced manager, the turnaround and renewed product innovation promised by Bartz was slow in coming.

In addition, advertising sales results had worsened and recent quarterly reports showed little progress.

To remedy the situation, directors had asked Bartz to present a strategic plan earlier this year, which she did with the help of top execs. It further underscored the idea of Yahoo as a top-level digital media company.

But the board pressed for more details and felt Bartz was not the right exec to carry out the kind of dramatic renewal of Yahoo that is needed.

Looming, too, was the third-quarter earnings results on October 18, which sources said will show continued weakness at Yahoo.

For that, it’s likely the fired Bartz will get the blame, giving the board — which is also being criticized by large shareholders and others — a bit of breathing room as it figures out what to do next.

In other words, with no good news to report, the Yahoo board decided to deliver some bad news to Bartz.

(In related news, according to an 8-K filing by the company, interim Yahoo CEO and also CFO Tim Morse got a small bump in base salary from $600,000 to $750,000, effective September 15, 2011.)

And here is a video I did on WSJ.com’s Digits show yesterday about the buyer interest in Yahoo I previously wrote about, as well as its weak board:

The Yahoo board will be meeting in Silicon Valley tomorrow to discuss a wide range of worrisome issues facing the troubled Internet giant.

Meanwhile, several sources said, even more private equity investors are weighing making major investments in the company, all pretty much aimed at ousting said directors.

So far, that has only been Third Point’s Daniel Loeb, whose massive hedge fund now owns 5.1 percent of Yahoo.

Loeb appears tomorrow at the high-profile Delivering Alpha investor conference in New York at 2 pm PT, where he is expected to take another swing at Yahoo’s board.

His next moves, sources said, could include buying up more shares to put the pressure on and also presenting his own alternate slate of directors, much as activist investor Carl Icahn did several years ago at Yahoo.

Translation: Forget AOL’s CrunchGate — this is big-boy corporate battling!

Add that to the pile on Yahoo’s board meeting agenda, along with some other critical issues that include: Outlining the criteria for any CEO candidate and a discussion of headhunting firms to hire; a review of strategic alternatives, including a presentation by its investment advisors, Allen & Co.; and how to stabilize the company and reassure its dusting-off-their-resumes employees.

Finding answers to these questions is going to be difficult enough, but the ever increasing pressure from outside investors is going to make it even harder.

Some definite tire-kickers reportedly looking at a bid include Providence Equity Partners, Silver Lake, Blackstone, Texas Pacific Group and even KKR.

While KKR has reportedly close ties with Yahoo Chairman Roy Bostock, he is now the main target for pretty much everyone else.

That includes Loeb, as well as other major Yahoo shareholders.

That’s no surprise: Bostock, who is also on the boards of Morgan Stanley and Delta Airlines, has presided over a series of gaffes at Yahoo since he became chairman in 2008 (he’s been on the board since 2003).

Those have included: Yahoo’s bungled effort to stave off a takeover by Microsoft several years ago; the too-long enthusiasm for CEO Carol Bartz, who was hired in early 2009 and fired last week; sitting unusually still as competitors such as Facebook, Google and more have out-innovated and outgrown Yahoo; and, of course, the falling knife of a stock, which has dropped precipitously since Bostock has been in charge of the board.

As Loeb wrote in a letter he sent to the company:

“It is time that certain members of this Board were held accountable for its past failures and their individual roles. Accordingly, we insist that Mr. Bostock, who championed Ms. Bartz’s hiring and led the charge against the Microsoft deal, promptly resign from the Board.”

Said another source with knowledge of the situation: “Under Roy’s leadership, this weak and bumbling board took too long to fire a clearly failing CEO and now has no plan, except throwing up their hands and hoping someone comes along.”

Here is one certainty: Someone is going to come along and it is not going to be pretty.

And so it begins again for Yahoo.

When shareholders attack, that is.

In a filing with the Securities and Exchange Commission, Third Point LLC, a large shareholder of Yahoo, called for a new board.

The multi-billion dollar hedge fund now owns 5.1 percent of the Silicon Valley Internet giant, making it the third largest shareholder.

“This letter details our principled demands for sweeping changes in both the Board of Directors (the “Board”) and Company leadership, and outlines the hidden value of Yahoo, which has been severely damaged — but not irreparably — by poor management and governance,” said Third Point CEO Daniel Loeb in a letter to Yahoo Chairman Roy Bostock.

Loeb outlines the damage, including the botched takeover fight with Microsoft and its hiring of the now ousted CEO Carol Bartz.

He calls for Bostock’s departure too from the board, as well as others:

“It is time that certain members of this Board were held accountable for its past failures and their individual roles. Accordingly, we insist that Mr. Bostock, who championed Ms. Bartz’s hiring and led the charge against the Microsoft deal, promptly resign from the Board. We also demand that fellow Directors Arthur Kern and Vyomesh Joshi, who have stood by silently during these last five years of woeful performance, join Mr. Bostock in resignation. Finally, we can only assume that Director Susan James, the President of Tri-Valley Animal Rescue, will also resign, given her close relationship with Ms. Bartz. If she does not do so voluntarily, the Board should request her resignation as well.”

The last time Yahoo had a big shareholder fight — with well-known investor Carl Icahn — there was much damage all around, especially to its share price.

You can read Third Point’s 13D filing here:

YHOO-20110908-SC13D-0

The firing of Yahoo CEO Carol Bartz leaves open one of the bigger and more difficult jobs in tech — one that has taken its toll on many.

Nonetheless, rapper Snoop Dogg stepped right up to the Twitter plate yesterday, as soon as news broke of the ouster.

Tweeted Snoop Dogg:

“Im takn over as tha CEO of Yahoo. Need sum of tha Snoop Dogg content ya digg. Nuff Said.”

Not nearly nuff!

Thus, while the Yahoo board has yet to begin a search, I have already been hard at work on selecting the next CEO.

(Last time, the company took none of my suggestions, but after the most recent result, the directors might want to pay mind!)

Sources said Yahoo is looking for an experienced Internet type, either from inside or outside the company.

“Yahoo has put its flag in the ground as a digital media company with a technology base,” said one source. “The job requires big buckets of expertise and needs someone who will grow the company.”

Here I go with the outsiders:

Peter Chernin: The former News Corp. exec has been eyeing Yahoo for a possible takeover with other investors. Both Yahoo and I had picked him when co-founder Jerry Yang stepped down as CEO almost three years ago, and he had declined the offer. This time, perhaps a big chunk of the company and total autonomy would work, even if making a hit like “Rise of the Planet of the Apes” is more fun.

Sheryl Sandberg: The COO of Facebook is sort of the anti-Bartz, with a smooth and efficient persona, and she is an experienced tech exec. But the former Google exec is at a place of growth at the social networking site, and is unlikely to want to leave the big show, especially since a blockbuster IPO is looming.

Jason Kilar: The Hulu CEO is in the midst of the process of selling the premium video service, with Yahoo as a bidder. While he has some tense relations with the studios, Kilar is top notch in his dedication to consumer products, and has a lot of experience from his stint at Amazon, too.

Dan Rosensweig: Currently CEO of IPO-headed Chegg textbook rental service, the former Yahoo exec never got a chance to run the company as its top leader. Well-connected and still well-liked by the troops at Yahoo, it still would be pretty hard for him to go home again.

Dave Goldberg: Sure, he’s married to Sandberg (see above), but the savvy CEO of polling phenom SurveyMonkey is one of the sharpest thinkers in Silicon Valley. He sold his music company to Yahoo many years ago and has a strong background in consumer online services.

Jon Miller: The chief digital exec at News Corp. almost got the CEO spot years ago when Carl Icahn was agitating for change at Yahoo, before Time Warner blocked him via a noncompete. With the mishegas at the media giant, and dwindling digital businesses there, it might be a good escape hatch for Miller.

Susan Wojcicki: The accomplished Google exec, who runs all its ad products, has the kind of calm, cool, collected persona that Yahoo could use right about now. The search giant was founded in her garage, and she has been a key part of its success since then. Wojcicki is also an understated class act in hey-look-at-me Silicon Valley.

Todd Bradley: The Hewlett-Packard exec just got blindsided when the company kicked webOS to the curb. While he is in line to run a possible spinoff of the device business, Bradley might also want to jump out of the frying pan into the fire.

Mike McCue: The CEO of Flipboard would certainly energize Yahoo with his intense focus on quality and consumer delight. The news app start-up could be a good addition to Yahoo, and McCue, the former Netscape and Microsoft exec who is well-liked in the Internet scene, would be, too.

Joanne Bradford: The former Yahoo advertising head bolted Bartz’s regime early on to run revenue for Demand Media. Well-liked in the ad business, she also knows where all the bodies are buried at Yahoo. Since ads and media are key at the company, she’d make an interesting choice.

Yusuf Mehdi: The Microsoft online exec would also be a left-field candidate to run Yahoo, given his even-keeled personality and longtime experience in the sector. And, though pricey, Mehdi’s impact on Bing search has been important. But he’s also been involved in the software giant’s lackluster ad and search partnership and still has not turned around the situation at MSN.

Kevin Johnson: The former Microsoft exec and current CEO of Juniper was once slated to be the CEO of Yahoo, had Microsoft managed to win the company in its hostile takeover attempt. In fact, Johnson was the architect of the idea of Yahoo running the media and Microsoft running the tech.

Tim Armstrong: Well, he might have been a good candidate before the downward slide of AOL and a recent series of questionable judgments. If Armstrong can’t keep a loud tech blogger in line, it’s not clear he can wrangle the Yahoo beast.

And here’s the insider scoop:

Ross Levinsohn: The former News Corp. exec is running the Americas for Yahoo, which puts him in charge of the company’s key businesses. But he’s still struggling to turn the ad business around, and how well he does that could be a major determinant of his success. But fantastic hair!

Blake Irving: The former Microsoft exec has an amiable nature and is well-liked at Yahoo, but he still needs to show that the company can ship some innovative products, and quickly. Like Livestand, the news reader, which is muchly late.

David Kenny: The Yahoo board member is now president of Akamai, which might preclude him from the job. But the well-regarded exec — he’s a snazzy dresser, too — ran one of the Internet’s top digital ad agencies and now has tech chops from the content delivery network.

Memo to Yahoo board: I have a million more ideas, from former Viacom exec Tom Freston to former Yahoo board member Eric Hippeau. Or why not bring back a passel of former Yahoos to advise, such as former CEO Terry Semel or former president Sue Decker?

Or Oprah! I hear Winfrey will be in Silicon Valley later this week, and she has a lot more free time now.

Like Snoop Dogg, she would fo shizzle be the bomb to cover.

Related posts

• As Yahoo Continues to Wobble, Investors (And Board) Eye Options
• Exclusive: Carol Bartz Out at Yahoo; CFO Tim Morse Named Interim CEO
• Carol Bartz’s Last F%*& You — Now Aimed at Yahoo Board
• Yahoo’s Statement on Bartz Ouster
• Wall Street Likes Bartz’s Firing — Yahoo Stock Spikes on News
• My Picks for Yahoo’s Next CEO — Maybe Snoop Dogg, Ya Digg?

The billionaire investor for years pushed, prodded and shouted to shake up Motorola, a cage-rattling that ended last December with the breakup of the company into two pieces.

Now, Icahn is making a fortune from Google’s plan to buy Motorola Mobility, one of the siblings that resulted from the breakup.

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In providing guidance along with its quarterly results, Motorola said it expects tablet sales to drop in the current quarter as its Xoom faces greater competition from a range of other tablets running Google’s Honeycomb operating system and as it prepares new products. Average selling prices have also dropped, in part as the company has cut prices.

On the plus side, the company said that a growing number of applications are starting to be made available for Android tablets. A mail-in update allowing Verizon Xoom customers to upgrade their device to support 4G LTE, originally due by June, is now slated for September.

Motorola said it expects total smartphone and tablet sales combined to be somewhere around 21 million to 23 million for the full year, with CEO Sanjay Jha saying that it has plans to offer a number of new smartphones in time for the back-to-school shopping season as well as two new LTE-ready tablets later this year.

Jha noted that the company had the benefit of being first to market among Android tablets with the Xoom, but that also posed some challenges.

“You have less time to cost optimize,” Jha said. The new tablets, he said, are designed to be more competitive on costs, adding later that carriers have reacted favorably to the forthcoming products and said that the company should be poised to do better in the fourth quarter.

The company said its delayed Droid Bionic — a dual-core 4G LTE phone — should be in stores in September with another LTE phone also due out before the end of the year.

“It’s my expectation that LTE will be a strong focus for carriers in the fourth quarter,” Jha said, saying that he believes Motorola will have a good position, though he declined to forecast how big that market will be.

Speaking on the company’s conference call with analysts, Jha also commented on the company’s patent portfolio in the wake of investor Carl Icahn suggesting the company consider selling off some of its patents. Noting the company has more than 17,000 patents granted and over 7,000 patents pending, Jha said the company is always reviewing its options. With new companies entering the mobile space, he said, “our patent portfolio in increasingly important.”

Even when pressed by analysts, though, Jha didn’t offer much in the way of specifics. “We will do all that we can to create and enhance our shareholder value using all of the assets we have at our disposal,” he said.

Mr. Icahn disclosed in a Securities and Exchange Commission filing Thursday he had talks with Motorola Mobility this week. In the filing, he said Motorola’s patent portfolio is “substantially larger” than Nortel’s and includes patents for so-called 4G telecommunication technologies that have “significant” value.

“I am concerned that the tail is wagging the dog,” Mr. Icahn said in an interview. “They should maximize the monetization without being overly concerned on the effects of the operating company.” Mr. Icahn added that he believes the company’s patents are worth more than $4 billion.

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Bids for the movie-rental chain were due Thursday evening, and a handful of potential suitors have been considering whether to square off against a group of hedge funds that already offered to buy Blockbuster for about $290 million, the people said.

The hedge funds, led by Monarch Alternative Capital, hold a big chunk of Blockbuster’s senior bonds and made a so-called “stalking horse” bid in February, setting a floor that other suitors must top to win the video-store chain.

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Last month, Mr. Icahn offered to buy Mentor for $17 a share, less than two weeks after saying the chip-design software company should put itself on the block. Mr. Icahn is known for targeting companies he views as undervalued and seeking changes, such as new management, to boost shareholder value.

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The bid, valued at $17 a share, comes after Mr. Icahn’s $665 million takeover offer for power-generation company Dynegy Inc. expired on Friday. Mr. Icahn is well-known for targeting companies he views as undervalued, seeking changes such as new management to boost shareholder value.
Mr. Icahn and another Mentor investor, Casablanca Capital LLC, have criticized Mentor’s management for hurting shareholders and wasting money. Both Mr. Icahn and Casablanca—run by former Lazard banker Douglas Taylor and by Donald Drapkin, a former official with Lazard and Ronald O. Perelman’s investment firm—also have lambasted the Wilsonville, Ore., company for efforts to move up its annual shareholder meeting and undermine possible efforts to vote on rival board candidates.

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Mark Zuckerberg has signed onto the “Giving Pledge,” which asks its signatories to commit publicly to give away the majority of their wealth.

The 26-year-old is one of 16 billionaires new to the pledge, which now totals more than 50 donors. New names include AOL co-founder Steve Case, investor Carl Icahn and former junk-bond king Michael Milken.

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He’s baaaaaack.

Former Fox Interactive Media President Ross Levinsohn, that is, who is the top candidate to replace Hilary Schneider as Yahoo’s North American head, according to several sources close to the situation.

While the deal is not completely struck, sources said Levinsohn is very close to taking the job.

Sources added, if he does, he is likely to remain living in Los Angeles, where he has long been located. Yahoo has a large facility in Santa Monica.

The move is a bold one for Yahoo CEO Carol Bartz, who desperately needs to bring in major Internet talent to the company to shore up her worrisome inexperience in the space.

Yahoo has been rocked by management turmoil–especially in the media and advertising unit–and also troubling weakness in revenue growth and innovative spark.

Levinsohn, one of the more colorful of Web personalities, certainly has a spark.

Levinsohn is currently an investor at Fuse Capital, which funds digital media and communications start-ups.

But sources said he has been itching to get back at a big company with scale in the digital media business and has been interested in Yahoo for some months.

At Yahoo, presumably, he will have purview over what Schneider did (and perhaps more), including the Silicon Valley Internet giant’s powerful media properties and its large advertising sales force in the U.S..

It’s likely Yahoo will hire a major ad sales exec to work under Levinsohn, and sources said the company has been in contact with several prominent execs to fill the slot left open with the March departure of Joanne Bradford to Demand Media.

Besides Schneider, also among the recent departures in the unit Levinsohn would run: VP of Media Jimmy Pitaro, who went to Disney, and U.S. Audience head David Ko, who moved to social gaming phenom Zynga.

Until now, Levinsohn is best known for his stint running digital operations for News Corp.’s then FIM unit.

It was at FIM that he rose to prominence after he bought MySpace, the social networking site that was once the hottest property on the Web.

At the time, Levinsohn and other execs also struck a gigantically lucrative advertising search deal with Google that garnered MySpace huge revenues.

After leaving News Corp. after repeated clashes with MySpace Co-founder and CEO Chris DeWolfe, he partnered with former AOL CEO Jon Miller in another investment company, Velocity Capital.

Ironically, both Miller and Levinsohn were the top choice of billionaire shareholder activist Carl Icahn as the execs he wanted to run Yahoo when he was agitating for change there a few years back in the midst of the failed takeover attempt by Microsoft.

When reached today, Miller–who now is the Chief Digital Officer of News Corp.–declined to comment on his former associate’s job prospects.

But he said: “If Yahoo is so lucky to get Ross, it would be great, because he is one of few people who understands all media.”

Indeed, although Levinsohn is better known as a dealmaker and media exec than as a sales expert, although he did manage digital advertising properties at FIM.

Previous to FIM, Levinsohn ran Fox Sports Interactive Media. He has also worked at the AltaVista Network, an early search pioneer, CBS Sportsline and Time Warner’s pay cable giant HBO. In addition, according to his bio at Fuse.

He also worked at Saatchi and Saatchi and in sports management and marketing with ProServ and Lapin and Rose Communications.

Yahoo declined to comment about the possible appointment of Levinsohn.

(And let’s hope Yahoo–especially the hip-shooting Bartz–doesn’t announce his arrival by also unfairly kicking former execs in the media and advertising unit in the teeth, as has been cloddishly done already too many times.)

BoomTown has also contacted Levinsohn via email and phone and has not heard back from the typically voluble exec.

But you can enjoy his stylings here, in a video interview I did with him in 2007:

]]> http://allthingsd.com/20101026/exclusive-yahoo-courts-former-news-corp-digital-exec-ross-levinsohn-as-u-s-head/feed/ 8 http://allthingsd.com/20100518/icahnt-get-rid-of-yahoo-stock-fast-enough-billionaire-investor-pares-down/ http://allthingsd.com/20100518/icahnt-get-rid-of-yahoo-stock-fast-enough-billionaire-investor-pares-down/#comments Tue, 18 May 2010 14:15:21 +0000 Kara Swisher http://kara.allthingsd.com/?p=28487

Carl Icahn took another big step into Internet investing oblivion yesterday by dumping even more of his once-massive Yahoo stock stake.

According to regulatory filings, the activist investor–who once stalked Yahoo like Captain Ahab (and just as wackily)–dumped eight million shares in the past three months, going from 12 million to four million.

This has pretty much been Icahn’s selling pattern for the last year.

At the height of his pursuit of Yahoo (YHOO) and fruitless efforts to sell it to Microsoft (MSFT), which resulted in his appointment to the board of the Internet giant and little else, he owned 75 million shares.

Icahn is no longer a Yahoo director–he stepped down last fall–and his shares were all bought at a significantly higher price, so he is likely taking a bath by owning Yahoo stock.

Icahn’s latest prey is Lions Gate Entertainment (LGF), which he is trying to take over. Good luck with the big-game hunting, Carl!

]]> http://allthingsd.com/20100518/icahnt-get-rid-of-yahoo-stock-fast-enough-billionaire-investor-pares-down/feed/ 0 http://allthingsd.com/20100405/blockbuster-icahn-slashes-stake/ http://allthingsd.com/20100405/blockbuster-icahn-slashes-stake/#comments Mon, 05 Apr 2010 07:04:55 +0000 Eric Savitz http://voices.allthingsd.com/?p=23520 Investor Carl Icahn has sharply reduced his holdings in financially troubled video retailer Blockbuster (BBI).

In an SEC filing Friday, Icahn said he now controls 3.77 percent of the company’s Class A shares, and 5.65 percent of BBI’s Class B shares. That’s down from 5.14 percent of the A shares and 6.05 percent on March 31–which was down from 16.87 percent of the A shares and 7.73 percent of the B shares in late January, when Icahn announced his resignation from the BBI board.

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]]> http://allthingsd.com/20100405/blockbuster-icahn-slashes-stake/feed/ 0 http://allthingsd.com/20100216/burkle-off-yahoo-board-as-bartz-solidifies-control-is-bostock-next/ http://allthingsd.com/20100216/burkle-off-yahoo-board-as-bartz-solidifies-control-is-bostock-next/#comments Tue, 16 Feb 2010 21:53:43 +0000 Kara Swisher http://kara.allthingsd.com/?p=24502

Like victims in the thriller, “Ten Little Indians,” the directors of Yahoo involved in its Microsoft takeover debacle are moving off its board.

Today, it’s billionaire businessman Ron Burkle (pictured here) doing the leaving, after serving since 2001, when he was brought onto the Internet giant’s board by former CEO Terry Semel.

So far under the tenure of CEO Carol Bartz, who came to Yahoo (YHOO) in January 2009, Carl Icahn, the activist shareholder who was also a big player in the MicroHoo fight, departed in late October 2009.

(Icahn has since been dumping Yahoo shares, which reached a high of 75 million and are now at about 12 million, as reported by Digital Daily’s John Paczkowski earlier today.)

In addition, Maggie Wilderotter–who was once thought to be a candidate for Yahoo’s CEO job after former CEO and co-founder Jerry Yang stepped down–left in late September 2009.

Yahoo named Sue James, a former high-ranking Ernst & Young exec, as a new board member in January.

More appointments are likely as Bartz adds directors of her choosing.

Yahoo said in a press release this afternoon that Burkle, who made his giant fortune in the supermarket business, had decided not to stand for re-election at its 2010 annual stockholders’ meeting.

Speaking for BoomTown alone, it is a welcome departure, since it was Burkle, along with Yahoo Chairman Roy Bostock, who was most influential and involved in key decision-making in Yahoo’s disastrous battle with Microsoft (MSFT) in 2007 and 2008.

The fight wounded Yahoo badly, both on Wall Street and within the organization, leaving the Silicon Valley icon struggling to return itself to relevance and growth.

Here is the full press release from Yahoo about Burkle’s leaving:

Yahoo! Announces Ron Burkle Will Not Stand for Re-Election to Board

SUNNYVALE, Calif., Feb 16, 2010–Yahoo! Inc. (NASDAQ: YHOO) announced today that Ron Burkle has decided not to stand for re-election to the company’s Board of Directors at its 2010 annual stockholders’ meeting in order to devote more time to his other business interests. Mr. Burkle has served on the company’s board since November 2001.

“On behalf of our entire board, I would like to thank Ron for his distinguished service and invaluable contributions to our company and board,” said Roy Bostock, chairman of Yahoo!’s Board of Directors. “Yahoo! and its stockholders have benefited greatly from the counsel, insights and objectivity Ron has brought to the company during his nine years on the board. We wish him well in his future endeavors.”

“It has been a great privilege to serve on Yahoo!’s board and to work with such an outstanding group of people,” said Ron Burkle, managing partner of The Yucaipa Companies.

]]> http://allthingsd.com/20100216/burkle-off-yahoo-board-as-bartz-solidifies-control-is-bostock-next/feed/ 0 http://allthingsd.com/20100216/icahn-cans-yahoo/ http://allthingsd.com/20100216/icahn-cans-yahoo/#comments Tue, 16 Feb 2010 13:15:45 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=34872 Carl Icahn is slowly cutting his ties with Yahoo. The billionaire investor, who once held some 75 million shares in the Internet pioneer, has whittled that stake down to about 12 million shares as of Feb. 12, according to a new filing with the Securities and Exchange Commission.

An interesting divestiture considering Icahn’s history with the company, which includes the proxy contest he mounted in 2008 to oust Yahoo’s board of directors after it rejected Microsoft’s $47.5 billion acquisition offer. With Yahoo’s (YHOO) stock trading at around $15–a far cry from the $33 a share it was valued at around the time of the Microsoft (MSFT) offer–and the company continuing to lose search market share, there’s little left to hold Icahn’s interest.

]]> http://allthingsd.com/20100216/icahn-cans-yahoo/feed/ 0 http://allthingsd.com/20100203/take-two-takes-off-icahn-new-games-no-layoffs/ http://allthingsd.com/20100203/take-two-takes-off-icahn-new-games-no-layoffs/#comments Thu, 04 Feb 2010 00:00:32 +0000 Eric Savitz http://voices.allthingsd.com/?p=20896 So, let’s sort out some of what’s driving up shares of Take-Two Interactive (TTWO), the video game company best known for its Grand Theft Auto franchise.

• So, for starters, investor Carl Icahn recently increased his stake in the company; TTWO has agreed to give him control of three board seats. He thinks the stock is too cheap. (Duh.)
• Icahn’s involvement has fed into a steady drumbeat of rumors suggesting that the company could still eventually be acquired by Electronic Arts (ERTS); in 2008, the company rejected a $25.74-a-share bid from EA as too low. Always looking out for the shareholders!

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]]> http://allthingsd.com/20100203/take-two-takes-off-icahn-new-games-no-layoffs/feed/ 0 http://allthingsd.com/20100202/blockbuster-icahn-resigns-board-seat/ http://allthingsd.com/20100202/blockbuster-icahn-resigns-board-seat/#comments Tue, 02 Feb 2010 18:30:28 +0000 Eric Savitz http://voices.allthingsd.com/?p=20847 Investor Carl Icahn disclosed in an SEC filing late last week that he has resigned from the Blockbuster (BBI) board of directors, effective last Thursday. Icahn made the filing on Friday, and the company followed up with its own filing today.

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