Strategy and Governance at Yahoo! Inc.

Posted: 5 Feb 2012

See all articles by Krishna Palepu

Krishna Palepu

Harvard University - Harvard Business School; Harvard University - David Rockefeller Center for Latin American Research; Harvard Business Review; NBER; International Academy of Management

Suraj Srinivasan

Harvard Business School

David Lane

Harvard University - Business School (HBS)

Ian McKown Cornell

Harvard University - Business School (HBS)

Date Written: October 31, 2011

Abstract

Yahoo! faces a number of governance and strategic challenges in late 2011 as it tries to compete with rivals such as Google and find ways to monetize its shareholding and business links with Alibaba Group in China and Yahoo! Japan. The company is now valued at almost half the offer that Microsoft had made in its acquisition offer in 2008. The depth of the challenge is underscored by the frequent CEO changes the company has had, culminating in the recent firing of the latest CEO, Carol Bartz. The case examines the successes and failures at Yahoo! and the decisions now facing its board as it encounters investor pressure to improve performance.

Learning Objective: The case discusses strategic and governance challenges facing Yahoo! in 2011. The case allows students to discuss the merits of why Yahoo! turned down Microsoft's offer in 2008, evaluate Yahoo!'s value, and assess the options available to the board in late 2011. The case is appropriate for courses in business valuation, strategy or for programs focused on corporate boards.

Suggested Citation

Palepu, Krishna and Srinivasan, Suraj and Lane, David and McKown Cornell, Ian, Strategy and Governance at Yahoo! Inc. (October 31, 2011). Harvard Business School Accounting & Management Unit Case No. 112-040, Available at SSRN: https://ssrn.com/abstract=1998105

Krishna Palepu (Contact Author)

Harvard University - Harvard Business School ( email )

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Suraj Srinivasan

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States

HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=pub&facId=10700

David Lane

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Ian McKown Cornell

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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