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To: GST who wrote (119688)	3/8/2001 5:26:15 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

Gst, I don't think you'll be hearing from Billy for awhile. >Published: March 7 2001 20:30GMT \| Last Updated: March 8 2001 06:45GMT Yahoo!, the troubled internet portal, on Wednesday announced it was looking for a new chief executive to replace Tim Koogle, who will remain chairman. The world's leading internet portal also warned it would only break even this quarter because of a slump in advertising revenue. The company said it had hired head-hunters, Spencer Stuart & Associates, to find a new CEO. The fact that the Santa Clara-based group could not announce an immediate successor as CEO reinforced concerns over tensions within the board about the company's strategic direction. The turbulence at Yahoo!, still the best known brand on the web, is known to have attracted interest from several media and communications companies. Vivendi Universal, Europe's largest media group, is understood to have had detailed discussions with Yahoo! about how to identify synergies between the two groups. Other media companies, including Disney, are also reported to have been considering moves on the troubled portal. The Vivendi-Yahoo! talks are believed to focus on creating a "soft alliance", rather than a potential takeover of Yahoo! by Vivendi. But an alliance between Yahoo! and Vivendi Universal would offer the US internet portal access to the French company's collection of music and entertainment assets. For Vivendi Universal, a closer relationship with Yahoo! would give it much-needed distribution in the US. Yahoo! warned that revenues during the quarter would be between $170m and $180m against consensus forecasts of $232m. The company would only break even on a net earnings and earnings before interest, taxation, depreciation and amortisation basis, warned Susan Decker, chief financial officer. That compares with previous expectations of $28.25m of net earnings. Ms Decker said the company was committed to making a profit for the full year. In January, the group had predicted net earnings of $186m-$242m for 2001. The group's shares slumped 16 per cent to $18.68 in after hours trading. That compares with a peak of $205 last year. Yahoo! blamed the weakening macroeconomic climate for a shortfall in revenues. Ms Decker said that capital shortages had also forced start-up companies to reduce their marketing. The management reshuffle helps to explain why Yahoo! last week introduced a poison pill into its shareholding structure. Jerry Yang, one of the founders of the company, was said to want to ensure the company's defences were secure against hostile takeover approaches after it became clear the company would be searching for a CEO. Yahoo!, which has seen its value tumble from well over $100bn to little more than $11bn, has come to symbolise the malaise in the dotcom sector just as it once represented the dynamism of the new economy.