Yahoo! Rally Fails to Hold

Updated from June 18

Only Yahoo!(YHOO Quote) would put it this way.

What was the reason for the timing of CEO Terry Semel's resignation from the company's top slot, less than a week after he assured shareholders that he had what it took to heading up the company?

To make sure everything went smoothly with his eventual resignation.

"The truth is that I've long been talking to the board about a smooth succession with senior leadership," Semel said during a Monday conference call.

But Semel's succession is more slapstick than silky smooth. And while newly appointed CEO Jerry Yang is a strong candidate, he's hardly a surefire way to tackle all of Yahoo!'s problems. The company's thinking about its strategy, meanwhile, remains much the same despite the changes.

	Terry Semel is gone, what do you think of his replacement? Where do you see the stock going? Answer Here

Yahoo!'s stock rose more than 4% in after-hours trading on the news, but a cynical point of view would hold that the deck chairs have simply been rearranged on the Titantic.

To understand the awkwardness surrounding Semel's succession -- and the uncomfortable situation Yahoo! still faces -- consider the situation of Yahoo!'s senior management. The company announced the abrupt departure of its chief technology officer just two weeks ago. To replace him, Yahoo! assigned co-founder Jerry Yang as interim CTO.

However, Yang will now take the role of CEO, leaving co-founder David Filo to focus more on technology in the interim.

Want more? Check out TheStreet.com TV video. Vishesh Kumar discusses the changes at Yahoo! with TheStreet.com TV's Farnoosh Torabi.