Magazine

Table: Yahoo's Sudden Fall from the Pinnacle


JAN. 3, 2000

Yahoo (YHOO) stock closed at an all-time high of a split-adjusted $237.50.

JAN. 8, 2000

Yahoo's top execs powwowed after learning that rival America Online (AOL) would acquire media giant Time Warner. Should they do something similar? Yahoo's answer: No.

MARCH, 2000

Yahoo flirted with buying auction site eBay (EBAY). CEO Tim Koogle was for it, but talks crumbled when No. 2 Yahoo exec Jeff Mallett banded with co-founders Jerry Yang and David Filo to oppose the deal.

SUMMER, 2000

Complaints of Yahoo's arrogance mounted. In a meeting with ad agency OgilvyInteractive, Yahoo execs showed no interest in a strategic relationship.

OCT. 10, 2000

Attempting to quell concerns about its ad revenues, Yahoo said 40% of its business came from dot-coms, down from 47% the previous quarter.

NOV. 21, 2000

Net cheerleader and Morgan Stanley analyst Mary Meeker downgraded Yahoo's stock to "outperform" because of ad worries. Stock plunged 15%, to $41.69.

NOVEMBER, 2000

Yahoo's board first considered a management shakeup. With Yahoo on the verge of topping $1 billion in sales for 2000, the idea was rejected.

JAN. 10, 2001

Despite notching up record sales of $311 million for the fourth quarter, Yahoo slashed its forecast for the next quarter by 25%, to $230 million. The company blamed an ad slowdown.

JANUARY, 2001

The idea of a management overhaul was once again floated at a board meeting. This time it got a bit more consideration. But no action was taken.

FEB. 15, 2001

Within two days, Fabiola Arredondo, head of Yahoo Europe, and Savio Chow, Yahoo's Asia chief, resigned. Days later, Jin Youm, CEO in Korea, quit. All cited personal reasons.

FEB. 27, 2001

With ad revenues declining sharply, Yahoo's board replaced Koogle. Mallett would not be moved up. Koogle called headhunter Jim Citrin and asked him to search for a replacement.

MAR. 7, 2001

Addressing the staff, Koogle announced he would give up the CEO post. Co-founder Jerry Yang shed tears. Hours later, the news was made public.

APR. 6, 2001

Yahoo's board voted unanimously to offer the top job to former Warner Bros. Chairman and co-CEO Terry Semel.

APR. 11, 2001

Yahoo announced disappointing first-quarter sales of $180 million, down 42% from the prior quarter. On the same day, Heather Killen, head of international operations, resigned.

APR. 17, 2001

Semel was named Yahoo's new boss. He agreed to take the job after Koogle also threw in the chairmanship.

MAY 1, 2001

Semel began work as Yahoo's new CEO and set aside 60 days to immerse himself in the business before he would lay out a turnaround plan.


Steve Ballmer, Power Forward
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