The importance of leadership cannot be denied. In professional sports, the value of a great coach or manager can be measured in wins and losses. If a team loses too much or does not play at a high level, the coach loses his job.
In his place the new manager can re-energize a team. There is a reason why the leaders that deliver get paid the big bucks.
Jerry Yang’s Legacy
This is why the soap opera at Yahoo (YHOO) has been so painful to watch. Chief Yahoo Jerry Yang was such an abject failure in his job, and yet he managed to remain in power for a long period of time.
When he was finally replaced by Carol Bartz, investors had to be cheered by the news. Now we get to see the results of the change. Where were you, Carol, when Microsoft came calling?
Oh well, better late than never, I guess.
On Tuesday, Yahoo released its earnings for the fourth quarter, the final period under Chief Yahoo Yang. The results were not pretty. The company lost $303 million or $0.22 per share. Take away one-time charges, and the company reported a profit of $0.17 per share.
Analysts had been expecting a gain of $0.13 per share.
Merger With Microsoft Not Out of the Question
According to Bartz all options are now on the table for the company. That means there is a potential for a merger or joint venture that would translate into increased value for the company, something Jerry Yang could not make happen.
Now with a new leader in charge the company is ready to charge forward.
Bartz stated that going it alone was an option as well. That sends a clear message to Microsoft (MSFT).
Put your ego aside Mr. Softy and get with the program. Buying this company in its entirety still makes sense.
The only difference is today you can get the whole thing for fifty percent of what you were willing to pay previously. Time is wasting. The economy will recover at some point and this discount will be gone soon.
It’s your move, Microsoft. I suggest you go for it.
This article was written by Jamie Dlugosch, contributor to InvestorPlace.com. For more actionable insight like this, go to: www.InvestorPlace.com. James F. Dlugosch contributed to this article.
