Robert Holmes
Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) is set to reshuffle its product groups as part of a reorganization plan to move past its takeover battle with Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks), according to reports.
The Wall Street Journal reported Friday that Yahoo! is considering merging its mail, search and home-page divisions into one centralized unit, according to people close to the matter. The plan is being spearheaded by the company's president, Susan Decker. Details of the reorganization could be announced as soon as next week, the report said. The pace of plans picked up after Yahoo! said Jeff Weiner, executive vice president of Yahoo!'s network division, would be leaving the company, which raised questions about his successor. Citing people with knowledge of the situation, the Journal reports that the choice of who will take over the reins of the group remains in limbo. Hilary Schneider, executive vice president for global-partner solutions, is likely to oversee revenue and sales, and possibly some products that fall outside the global group, such as Yahoo!'s media properties, the report indicated. Yahoo! has been pressured to increase earnings following Microsoft's failed $47.5 billion takeover bid for the Internet search giant. Microsoft offered to buy Yahoo! for $31 a share on Jan. 31. It later sweetened the offer to $33 but could not reach an agreement with Yahoo!, which had been seeking $37. Still, the two sides remained in talks to come up with an alternative deal that would not involve an outright takeover. Billionaire investor Carl Icahn, who holds about 59 million shares, or more than 4% of Yahoo!, had argued that the company should sell to Microsoft for a little more than $34 a share. Last month, Icahn launched a proxy battle to oust the board.
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