Yahoo: Things Are Even Worse Than They Seem

Oof, Yahoo (YHOO). The Alibaba dispute, just the most recent Yahoo train wreck, is still a fresh wound for shareholders. And things are getting worse.

Yahoo CEO Carol Bartz has long promised a turnaround at the lagging company. But we’ve been digging for new information about the state of Yahoo in advance of the annual shareholder meeting later this week, and everything we’re hearing isn’t good. One investor we spoke with said “It’s a turnaround alright, but it’s a 360° turnaround. Basically, they’re spinning in circles.”

Things we’ve learned from multiple sources:

One person we spoke with was willing to go on record. Eric Jackson, who’s been openly critical of Yahoo for years, said he hopes for a board level shakeup at the meeting on June 23. As for Bartz, Jackson threw this zinger: “Personally I’d like to see [Softbank CEO] Masayoshi Son or [Alibaba founder] Jack Ma become CEO of Yahoo.”

These are really just the raw notes from our discussions. We have a couple of other major stories developing around Yahoo as well. But for now we just have to wait and see how things play out at the shareholder meeting, and whether the Yahoo board can avoid a massive no confidence vote.

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