Table: Yahoo's Sudden Fall from the Pinnacle
JAN. 3, 2000
Yahoo (YHOO ) stock closed at an all-time high of a split-adjusted $237.50.
JAN. 8, 2000
Yahoo's top execs powwowed after learning that rival America Online (AOL ) would acquire media giant Time Warner. Should they do something similar? Yahoo's answer: No.
Yahoo flirted with buying auction site eBay (EBAY ). CEO Tim Koogle was for it, but talks crumbled when No. 2 Yahoo exec Jeff Mallett banded with co-founders Jerry Yang and David Filo to oppose the deal.
Complaints of Yahoo's arrogance mounted. In a meeting with ad agency OgilvyInteractive, Yahoo execs showed no interest in a strategic relationship.
OCT. 10, 2000
Attempting to quell concerns about its ad revenues, Yahoo said 40% of its business came from dot-coms, down from 47% the previous quarter.
NOV. 21, 2000
Net cheerleader and Morgan Stanley analyst Mary Meeker downgraded Yahoo's stock to "outperform" because of ad worries. Stock plunged 15%, to $41.69.
Yahoo's board first considered a management shakeup. With Yahoo on the verge of topping $1 billion in sales for 2000, the idea was rejected.
JAN. 10, 2001
Despite notching up record sales of $311 million for the fourth quarter, Yahoo slashed its forecast for the next quarter by 25%, to $230 million. The company blamed an ad slowdown.
The idea of a management overhaul was once again floated at a board meeting. This time it got a bit more consideration. But no action was taken.
FEB. 15, 2001
Within two days, Fabiola Arredondo, head of Yahoo Europe, and Savio Chow, Yahoo's Asia chief, resigned. Days later, Jin Youm, CEO in Korea, quit. All cited personal reasons.
FEB. 27, 2001
With ad revenues declining sharply, Yahoo's board replaced Koogle. Mallett would not be moved up. Koogle called headhunter Jim Citrin and asked him to search for a replacement.
MAR. 7, 2001
Addressing the staff, Koogle announced he would give up the CEO post. Co-founder Jerry Yang shed tears. Hours later, the news was made public.
APR. 6, 2001
Yahoo's board voted unanimously to offer the top job to former Warner Bros. Chairman and co-CEO Terry Semel.
APR. 11, 2001
Yahoo announced disappointing first-quarter sales of $180 million, down 42% from the prior quarter. On the same day, Heather Killen, head of international operations, resigned.
APR. 17, 2001
Semel was named Yahoo's new boss. He agreed to take the job after Koogle also threw in the chairmanship.
MAY 1, 2001
Semel began work as Yahoo's new CEO and set aside 60 days to immerse himself in the business before he would lay out a turnaround plan.