Yahoo Faces Investor Revolt for Lagging Behind Google

Jun 11, 03:22 PM

Current Headlines: By Evening Standard, London

Jun. 11--Executives at Yahoo are bracing themselves for an ill-tempered annual shareholders' meeting tomorrow, with a group of the most vocal dissidents mulling a call for the head of chief executive Terry Semel, on whose watch arch-rival Google has steamed ahead.

"The company is drifting and its problems ultimately lie at Terry's feet," said shareholder Eric Jackson, who added that he would confront Semel on behalf of 80 other investors. Since Google's float three years ago its stock has risen 600 percent while Yahoo's has fallen 4 percent. Google, sitting on a huge cash pile, is beating Yahoo on many more fronts than just the search engine cash cow.

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