The Net giant has appointed Warner Bros. veteran Terry Semel as its new chairman and chief executive officer.
Semel, a 24-year veteran of Warner Brothers, is taking on the CEO role effective May 1st. Former CEO Koogle will become vice chairman, a role he is expected to keep until August, after which he will remain on Yahoo's board.
The company also announced that Semel purchased 1 million shares of Yahoo common stock in a private placement transaction.
Last month, Yahoo shook up Wall Street with a revenue warning and news of Koogle's decision to step down.
In recent weeks, the company has watched a string of top executives leave the company, including its sales head, Anil Singh; its Asian operations chief, Savio Chow; and its European head, Fabiola Aredondo.
Although Yahoo last week posted first-quarter earnings slightly above estimates, it also said it intends to lay off 12 percent of its 3,510 employees in an effort to trim costs, becoming the last of the major Internet companies to tighten its belt with job cuts.
By the third quarter, it expects to begin saving US$7 million to US$9 million per quarter through the cuts alone.
Yahoo said Semel is one of the most respected executives in the media industry. He is noted for his role as chairman and co-chief executive officer at Warner Bros., where he is credited with helping build the company into one of the largest names in music and entertainment.
Some analysts raised questions about the appointment. Semel has been a powerful figure in managing and producing creative content, such as movies and hit records. But, they wondered, will his skills translate well for Yahoo, which is in desperate need of turning around its advertising business?
"It's a bit of a curious choice," said Jordan Rohan, an equity analyst at Wit SoundView. "I'm willing to keep my mind open about this, but I would have thought a senior cable exec would be a little more logical choice."
Before joining Warner Bros., Semel was president of Walt Disney's Theatrical Distribution division. He sits on the boards of Polo Ralph Lauren, Revlon and the Guggenheim Museum.
