Yahoo boardroom drama leads weak day for sector

Feb.19, 2008 in Market Outlook

Yahoo boardroom drama leads weak day for tech stocks

By Rex Crum, MarketWatch

Last Update: 4:38 PM ET Feb 15, 2008

SAN FRANCISCO (MarketWatch) — Technology stocks were mostly in the red early
Friday as bellwether issues fought for gains and reports began to surface about
possible dissention on Yahoo Inc.’s board regarding Microsoft Corp.’s $44.6
billion acquisition offer.

The tech-heavy Nasdaq Composite Index ($COMPQ) fell almost 11 points to close at
2,321, while the Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia
Semiconductor Index ($SOX) also lost ground.

The New York Post reported that an informal group of Yahoo (YHOO) board members
has formed out of concern about Chief Executive Jerry Yang’s reaction to
Microsoft’s bid. Last week, Yahoo turned down the Microsoft offer, and earlier
this week, Yang sent a letter to Yahoo shareholders explaining the company’s
reasons for saying no.

However, the Post said the informal group — consisting of Yahoo Chairman Roy
Bostock and other board members — is concerned that Yang and some of his
supporters might be acting more out of emotion rather than fiduciary duty. (The
New York Post and MarketWatch are both owned by News Corp. (NWS), which is
reported to have been in talks with Yahoo about some form of partnership.)

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