Yahoo (YHOO)

If you have not heard yet yesterday after the market close Yahoo announced that CEO Terry Semel has been replaced. The new CEO will be Jerry Yang, one of the original founders of Yahoo.

If you recall a couple of months ago there was speculation flying that Yahoo and Microsoft might be in discussions to form some sort of partnership. That all seemed to fall apart and not much was ever said of that again. I feel that there has been an inside battle at Yahoo within the Board of Directors over how the company was being run.

That inside battle has festered into a shakeup and a new CEO. Yahoo has been a laggard in the internet sector for quite some time. This news of the company shakeup will most certainly create volatility in YHOO in the short term. For day traders there will be lots of speculative plays in the next day or so as news will be driving YHOO like a tug of war. Long term investment is still questionable. I think Yahoo is now going to explore with new vigor some new ideas for the company. But before I put any money in my long term account on the YHOO horse I want to see it run in a few races first and see if it has legs. Otherwise my feelings on Yahoo will remain as they have been for 2 years now.. which has been that Yahoo is worth more sold off then it is as an operating company itself. Time will tell.