Blodget Would Bet His Company On A Yahoo Turnaround

Here's the plan:

* Yahoo will acquire our parent company, Silicon Alley Media, for stock. We already own some YHOO, and we're willing to put more money where our mouth is: Specifically, we're willing to bet our entire company on our YHOO turnaround plan.
* Yahoo will appoint us as acting CEO. No worries: We will not become yet another fat CEO pig at the trough. In fact, we're so excited about this opportunity that we'll do it for Jerry's salary: $1 a year (okay, maybe we could add some zeroes, to preserve our marriage. But not six. Or, god forbid, eight). We also have no ambition to hold this post indefinitely. Several folks in the business world are more qualified to run a global Fortune 500 company than we are, and when the time is right, we will gladly hand the reins to one of them. Unlike many incoming Yahoo CEO candidates, however, we know what Yahoo needs right now, and there's no sense wasting time CEO-hunting when we can start the process today.
* We will immediately resize the company, cutting approximately one-quarter to one-third of the cost base. Even now, with its bloated cost structure, Yahoo is still making money. Our cuts will ensure that Yahoo is positioned to survive a major online ad downturn and still have plenty of cash flow to reinvest in the business. One big reduction instead of several small ones will also ensure that Yahoo doesn't go down the road it is heading down now, which is the demoralizing death by a thousand cuts.

Read the whole story here.

Comments

[NoLabelForMe]

Blodget was saying that Yahoo was undervalued when Microsoft offered $40 Billion for Yahoo. At the time I wrote him advising that Microsoft was foolish for offering a dime for Yahoo. Yahoo is dead. The only vallue Blodget and his buddies would find in Yahoo, is trading it up for resale. I hope no one falls prey to anyone's plan to buy up Yahoo shares, with the idea the company can make a turnaround.

It has no viable business plan. Let it die.

[kassandrasduplex]

Jarry Yang had his company stolen fromhim by greater powers. The move that got me was when the guy from WSJ went over to Yahoo News division and dropped the message boards, eliminating one of the most democratic forums on the net. There has been nothing like it since. Then he embarked on a hard core right wing news bias and tabloid garbage too. It was as if the guy was trying to destroy Yahoo's news division. But perhaps by driving down the value of Yahoo, that is they was they take it over. They did something similar to Ted Turner at CNN.

[mcarmaniac]

someone needs to wake jerry from his nap and tell him he's been fired

[NoLabelForMe]

Actually, someone needs to tell Jerry there is life after Yahoo. He will remain part of the company's executive team (pity whoever takes the new CEO job) and will retain immense unofficial power because he is...well, the founder. Yahoo is dead. It's time Jerry learn from Mark Cuban and Todd Wagner (founders of broadcast.com who sold to Yahoo years ago) and use their riches elsewhere.

[munki]

Jerry was creative at the time...shortly after the internet was introduced...
He got softbank (Japan) to support and expand the company...
Got great presence in Asia, Europe... globally...
then the competitions entered... especially, in Asia... geeks...
Perhaps... we learned from this lesson...
Global expansion, but must need to be ahead of time...
No one thought of rapid change and growth in Chinese, Indian and other Asian countries' tech growth...
Not only our backyard... look to the blue sky!

[curiousasheck]

Jerry should do good things with all this money rather then hoarding it.. Something that really helps people for a change because he's not going to be able to take it with him when the "last instant" finally arrives and it's to late.

[KillTheMessenger]

Who in the world needs Yahoo?

Just a simple question anybody who wants to put money into it should be able to answer.

[NoLabelForMe]

Spot on, KTM. There is no value proposition for the company.

[curiousasheck]

Poor Jerry. This guys really suffering. Net Worth US$2.3 billion how in the hell is he ever going to get by.