Drastic action at Yahoo!

Shareholder pressure has seen Yahoo’s CEO, Terry Semel resign from his position. He is being replaced by Yahoo co-founder Jerry Yang (pictured) after Yahoo continued to lose ground to its rivals, most notably Google – with the company losing nearly 30 per cent of its share price since 2005.

According to Associated Press’s business writer, Michael Liedtke the company is likely to undergo drastic changes with the return of Yang. Susan Decker, who was recently promoted from chief financial officer to oversee the company’s advertising operations was also promoted to president of Yahoo.

Semel is largely credited with stabilising the company’s advertising and media revenues prior to the recent rise of Google. More recently though he has been criticised for missing the recent social networking and for failing to react to Google sooner.