Eric Jackson, president of one of the company's biggest investors, Ironfire Capital, which owns about 3.2 million shares, said he believes all is not lost for an eventual Microsoft takeover. Jackson said he believes Microsoft will return in 2009 with a third offer.
"The company [Yahoo] needs to make some fundamental changes if it's going to improve its performance and stock price," Jackson said after the Aug. 1 shareholders' meeting.
"Yahoo is too bloated right now; they need to reduce head count, focus on core businesses and divest some of their holdings that aren't making any money," Jackson said. "But it's only about the second inning [of the company comeback], although it's been the second inning for a long time. There have been a lot of pitches and foul balls."
Yang, 40, replaced Terry Semel and assumed the CEO role at the board's request in June 2007, and has led Yahoo through a strategic repositioning and transformation of its platform.
Yang and Stanford University classmate David Filo co-founded Yahoo in 1995. Yang's net worth is estimated to be about $2.3 billion; this year he was ranked No. 524 in Forbes' listing of the richest people in the world.