SAN FRANCISCO (AP) -- Yahoo Inc. founder Jerry Yang has never concealed how much he cares about his Internet company.

His emotional attachment is one of the reasons he balked at a $47.5 billion takeover offer from Microsoft Corp. six months ago. The same devotion finally led Yang to conclude he should step aside as chief executive, as the company seeks to bolster its depressed stock price and sagging earnings in an economic downturn that might prove even more wrenching than the dot-com bust of eight years ago.


Yang's surrendering of the CEO reins, announced Monday, won't occur until Yahoo finds a suitable replacement. The Sunnyvale-based company said it is interviewing candidates inside and outside Yahoo in a search led by its chairman, Roy Bostock, and the executive recruitment firm Heidrick & Struggles.

It didn't take long for analysts to conclude Yang's departure will clear the way for a major overhaul that could culminate in Yahoo's sale to Microsoft -- something Yang refused to do in May, to the great irritation of shareholders.

"We still believe Microsoft will eventually own Yahoo," UBS analyst Benjamin Schachter wrote in a research note late Monday. "Jerry moving out of the CEO role may accelerate this."

Microsoft declined to comment Monday.

Although Yang had publicly expressed his desire to remain at the helm, Yahoo's board faced intensifying pressure to cast him aside as the company's shares plunged to their lowest levels since early 2003. The stock fell 19 cents Monday to close at $10.63 -- a fraction of Microsoft's last bid of $33 per share in early May.

Microsoft CEO Steve Ballmer huffily withdrew the offer after Yang sought $37 per share. The negotiating breakdown triggered a shareholder revolt led by billionaire investor Carl Icahn, who called for Yang's ouster in July.

Icahn reached a truce that put him and two allies on Yahoo's 11-member board, but he still has been lobbying for Yahoo to pursue a deal with Microsoft that would either involve selling the company in its entirety or just its search engine, which ranks a distant second to Google Inc. An Icahn spokeswoman said the financier had no comment Monday.

Monday's shake-up comes as no surprise, given the challenges facing Yahoo.

"The shareholders were ready to pick up pitchforks and torches," said technology analyst Rob Enderle. "If Jerry wasn't a founder, he already would have been gone" months ago.

Bostock made it sound as if the change in command had been in the works for some time. "Jerry and the board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level," he said.

Yang, who started working on Yahoo with Stanford University classmate David Filo in 1994, will revert to "Chief Yahoo," a titular role he filled before replacing former movie studio boss Terry Semel as CEO in June 2007. He will also remain on Yahoo's board of directors.

"All of you know that I have always, and will always bleed purple," Yang wrote Monday memo to employees, referring to the company's official color.

Sue Decker, Yahoo's president, is expected to be among the candidates to succeed Yang, although she has been an integral part of the management team that has exasperated the company's shareholders.

Dan Rosensweig, who resigned as Yahoo's chief operating officer, also could be lured back as CEO, or the board could turn to one of its own directors, such as former Viacom Inc. CEO Frank Biondi or former Nextel CEO John Chapple.

Investors appeared to be pleased with the decision to replace Yang, as Yahoo shares climbed more than 4 percent in Monday's extended trading.

Yang, 40, had been pursuing a strategy that he thought would prove Yahoo was worth more than Microsoft was willing to pay, but the rapidly deteriorating economy made a comeback seem increasingly unlikely.

After squandering the opportunity to sell to Microsoft, Yang tried to boost Yahoo's profit by forging an advertising partnership with Google.

But that backup plan fell through two weeks ago when Google walked away from the deal to avoid a court battle with the U.S. Justice Department, which had concluded the partnership would have throttled competition in the online advertising market.

Just a few hours after the Google partnership collapsed, Yang publicly said he thought Microsoft should hook up with Yahoo. But Ballmer threw cold water on the idea the next day by declaring he doubted a deal could be worked out.

Yang had also been exploring a possible acquisition of another fading Internet star, AOL, but most analysts panned the idea as a desperation move that threatened to hurt Yahoo more than it would help.

Although Yang's tenure as CEO is unlikely to be remembered fondly by shareholders, his legacy as an Internet visionary remains secure.

Yahoo's remarkable rise began in 1994 when Yang and Filo began compiling a directory of their favorite Web links while working on their engineering doctorates in a trailer at Stanford University. They initially called their site "Jerry and David's Guide to the World Wide Web," only to later decide to switch to an acronym for "Yet Another Hierarchical Officious Oracle."

Yang and Filo became two of the Internet's first billionaires not long after Yahoo went public in 1996 with fewer than 50 employees on the payroll. At the height of the dot-com boom, Yahoo's market value stood at $130 billion. It was less than $15 billion Monday.

WASHINGTON — Sorry, Mr. President. Please surrender your BlackBerry.

Those are seven words President-elect Barack Obama is dreading but expecting to hear, friends and advisers say, when he takes office in 65 days.

For years, like legions of other professionals, Mr. Obama has been all but addicted to his BlackBerry. The device has rarely been far from his side — on most days, it was fastened to his belt — to provide a singular conduit to the outside world as the bubble around him grew tighter and tighter throughout his campaign.

“How about that?” Mr. Obama replied to a friend’s congratulatory e-mail message on the night of his victory.

But before he arrives at the White House, he will probably be forced to sign off. In addition to concerns about e-mail security, he faces the Presidential Records Act, which puts his correspondence in the official record and ultimately up for public review, and the threat of subpoenas. A decision has not been made on whether he could become the first e-mailing president, but aides said that seemed doubtful.

For all the perquisites and power afforded the president, the chief executive of the United States is essentially deprived by law and by culture of some of the very tools that other chief executives depend on to survive and to thrive. Mr. Obama, however, seems intent on pulling the office at least partly into the 21st century on that score; aides said he hopes to have a laptop computer on his desk in the Oval Office, making him the first American president to do so.

Mr. Obama has not sent a farewell dispatch from the personal e-mail account he uses — he has not changed his address in years — but friends say the frequency of correspondence has diminished. In recent days, though, he has been seen typing his thoughts on transition matters and other items on his BlackBerry, bypassing, at least temporarily, the bureaucracy that is quickly encircling him.

A year ago, when many Democratic contributors and other observers were worried about his prospects against Senator Hillary Rodham Clinton, they reached out to him directly. Mr. Obama had changed his cellphone number, so e-mail remained the most reliable way of communicating directly with him.

“His BlackBerry was constantly crackling with e-mails,” said David Axelrod, the campaign’s chief strategist. “People were generous with their advice — much of it conflicting.”

Mr. Obama is the second president to grapple with the idea of this self-imposed isolation. Three days before his first inauguration, George W. Bush sent a message to 42 friends and relatives that explained his predicament.

“Since I do not want my private conversations looked at by those out to embarrass, the only course of action is not to correspond in cyberspace,” Mr. Bush wrote from his old address, G94B@aol.com. “This saddens me. I have enjoyed conversing with each of you.”

But in the interceding eight years, as BlackBerrys have become ubiquitous — and often less intrusive than a telephone, the volume of e-mail has multiplied and the role of technology has matured. Mr. Obama used e-mail to stay in constant touch with friends from the lonely confines of the road, often sending messages like “Sox!” when the Chicago White Sox won a game. He also relied on e-mail to keep abreast of the rapid whirl of events on a given campaign day.

Mr. Obama’s memorandums and briefing books were seldom printed out and delivered to his house or hotel room, aides said. They were simply sent to his BlackBerry for his review. If a document was too long, he would read and respond from his laptop computer, often putting his editing changes in red type.

His messages to advisers and friends, they say, are generally crisp, properly spelled and free of symbols or emoticons. The time stamps provided a window into how much he was sleeping on a given night, with messages often being sent to staff members at 1 a.m. or as late as 3 a.m. if he was working on an important speech.

He received a scaled-down list of news clippings, with his advisers wanting to keep him from reading blogs and news updates all day long, yet aides said he still seemed to hear about nearly everything in real time. A network of friends — some from college, others from Chicago and various chapters in his life — promised to keep him plugged in.

Not having such a ready line to that network, staff members who spent countless hours with him say, is likely to be a challenge.

“Given how important it is for him to get unfiltered information from as many sources as possible, I can imagine he will miss that freedom,” said Linda Douglass, a senior adviser who traveled with the campaign.

Mr. Obama has, for at least brief moments, been forced offline. As he sat down with a small circle of advisers to prepare for debates with Senator John McCain, one rule was quickly established: No BlackBerrys. Mr. Axelrod ordered everyone to put their devices in the center of a table during work sessions. Mr. Obama, who was known to sneak a peek at his, was no exception.

In the closing stages of the campaign, as exhaustion set in and the workload increased, aides said Mr. Obama spent more time reading than responding to messages. As his team prepares a final judgment on whether he can keep using e-mail, perhaps even in a read-only fashion, several authorities in presidential communication said they believed it was highly unlikely that he would be able to do so.

Diana Owen, who leads the American Studies program at Georgetown University, said presidents were not advised to use e-mail because of security risks and fear that messages could be intercepted.

“They could come up with some bulletproof way of protecting his e-mail and digital correspondence, but anything can be hacked,” said Ms. Owen, who has studied how presidents communicate in the Internet era. “The nature of the president’s job is that others can use e-mail for him.”

She added: “It’s a time burner. It might be easier for him to say, ‘I can’t be on e-mail.’ ”

Should Mr. Obama want to break ground and become the first president to fire off e-mail messages from the West Wing and wherever he travels, he could turn to Al Gore as a model. In the later years of his vice presidency, Democrats said, Mr. Gore used a government e-mail address and a campaign address in his race against Mr. Bush.

The president, though, faces far greater public scrutiny. And even if he does not wear a BlackBerry on his belt or carry a cellphone in his pocket, he almost certainly will not lack from a variety of new communication.

On Saturday, as Mr. Obama broadcast the weekly Democratic radio address, it came with a twist. For the first time, it was also videotaped and will be archived on YouTube.

Sources: NYTimes.com

WASHINGTON – Barack Obama swept to victory as the nation's first black president Tuesday night in an electoral college landslide that overcame racial barriers as old as America itself.

The son of a black father from Kenya and a white mother from Kansas, the Democratic senator from Illinois sealed his historic triumph by defeating Republican Sen. John McCain in a string of wins in hard-fought battleground states — Ohio, Florida, Virginia and Iowa.

A huge crowd in Grant Park in Obama's home town of Chicago erupted in jubilation at the news of his victory. Some wept.

McCain called his former rival to concede defeat — and the end of his own 10-year quest for the White House. "The American people have spoken, and spoken clearly," McCain told disappointed supporters in Arizona.

Obama and his running mate, Sen. Joseph Biden of Delaware, will take their oaths of office as president and vice president on Jan. 20, 2009.

As the 44th president, Obama will move into the Oval Office as leader of a country that is almost certainly in recession, and fighting two long wars, one in Iraq, the other in Afghanistan.

The popular vote was close, but not the count in the Electoral College, where it mattered most.

There, Obama's audacious decision to contest McCain in states that hadn't gone Democratic in years paid rich dividends.

Obama has said his first order of presidential business will be to tackle the economy. He has also pledged to withdraw most U.S. combat troops from Iraq within 16 months.

Fellow Democrats rode his coattails to larger majorities in both houses of Congress. They defeated incumbent Republicans and won open seats by turn.

The 47-year-old Illinois senator was little known just four years ago. A widely praised speech at the Democratic National Convention, delivered when he was merely a candidate for the Senate, changed that.

Overnight he became a sought-after surrogate campaigner, and he had scarcely settled into his Senate seat when he began preparing for his run for the White House.

A survey of voters leaving polling places on Tuesday showed the economy was by far the top Election Day issue. Six in 10 voters said so, and none of the other top issues — energy, Iraq, terrorism and health care — was picked by more than one in 10.

"May God bless whoever wins tonight," President Bush told dinner guests at the White House, where his tenure runs out on Jan. 20.

The Democratic leaders of Congress celebrated in Washington.

"It is not a mandate for a party or ideology but a mandate for change," said Senate Majority leader Harry Reid of Nevada.

Said Speaker Nancy Pelosi of California: "Tonight the American people have called for a new direction. They have called for change in America."

Shortly after 11 p.m. in the East, The Associated Press count showed Obama with 338 electoral votes, well over the 270 needed for victory. McCain had 127 after winning states that comprised the normal Republican base.

The nationwide popular vote was remarkably close. Totals from 58 percent of the nation's precincts showed Obama with 51 percent and McCain with 47.9.

Interviews with voters suggested that almost six in 10 women were backing Obama nationwide, while men leaned his way by a narrow margin. Just over half of whites supported McCain, giving him a slim advantage in a group that Bush carried overwhelmingly in 2004.

The results of the AP survey were based on a preliminary partial sample of nearly 10,000 voters in Election Day polls and in telephone interviews over the past week for early voters.

Democrats also acclaimed Senate successes by former Gov. Mark Warner in Virginia, Rep. Tom Udall in New Mexico and Rep. Mark Udall in Colorado. All won seats left open by Republican retirements.

In New Hampshire, former Gov. Jeanne Shaheen defeated Republican Sen. John Sununu in a rematch of their 2002 race, and Sen. Elizabeth Dole fell to Democrat Kay Hagan in North Carolina.

Democrats also looked for gains in the House. They defeated Republican incumbents Rep. Tom Feeney and Ric Keller in Florida, 22-year veteran Chris Shays in Connecticut and Rep. Robin Hayes in North Carolina.

At least two Democrats lost their seats. Rep. Kevin Mahoney fell after admitting to two extramarital affairs while serving his first term in Florida. In Louisiana, Democratic Rep. Don Cazayoux lost the seat he had won in a special election six months ago.

The resurgent Democrats also elected a governor in one of the nation's traditional bellwether states when Missouri Attorney General Jay Nixon won his race.

The White House was the main prize of the night on which 35 Senate seats and all 435 House seats were at stake. A dozen states elected governors, and ballots across the country were dotted with issues ranging from taxes to gay rights.

An estimated 187 million voters were registered, and in an indication of interest in the battle for the White House, 40 million or so had already voted as Election Day dawned.

Obama sought election as one of the youngest presidents, and one of the least experienced in national political affairs.

That wasn't what set the Illinois senator apart, though — neither from his rivals nor from the other men who had served as president since the nation's founding more than two centuries ago. A black man, he confronted a previously unbreakable barrier as he campaigned on twin themes of change and hope in uncertain times.

McCain, a prisoner of war during Vietnam, a generation older than his rival at 72, was making his second try for the White House, following his defeat in the battle for the GOP nomination in 2000.

A conservative, he stressed his maverick's streak. And although a Republican, he did what he could to separate himself from an unpopular president.

For the most part, the two presidential candidates and their running mates, Biden and Republican Gov. Sarah Palin of Alaska, spent weeks campaigning in states that went for Bush four years ago.

McCain and Obama each won contested nominations — the Democrat outdistancing former first lady Hillary Rodham Clinton — and promptly set out to claim the mantle of change.

Obama won Colorado, Nevada, California, Hawaii, Oregon, Washington, Florida, Virginia, New Mexico, Iowa, Ohio, Wisconsin, Michigan, New York, Rhode Island, Minnesota, Pennsylvania, New Hampshire, Vermont, Connecticut, Delaware, Illinois, Maine, Massachusetts, Maryland and New Jersey, as well as the District of Columbia.

McCain had Nebraska, Idaho, Mississippi, Texas, West Virginia, Utah, Arkansas, Kansas, Kentucky, Tennessee, Oklahoma, Wyoming, Alabama, South Carolina, Louisiana, South Dakota and North Dakota.

Obama wins the battleground state of Ohio and its 20 electoral votes (AP). Heading into the election, Obama led McCain by 7 points. Ohio was considered a must-win state for McCain. However, the Obama campaign flooded the state with volunteers in March, specifically rural and suburban regions. Obama had 82 offices in Ohio, more than double the number McCain had. Ohio has voted for the winning presidential candidate in every election since 1964. According to NBC, Obama has a considerable lead in electoral votes: 200 to McCain's 90.

McCain has won North Dakota and Louisiana, totaling 12 more electoral votes (AP). ABC and CBS project McCain will win the big state of Texas and its 34 electoral votes.

NBC and Fox are also projecting Obama will win New Mexico's 5 electoral votes. Historically, the state has had close races: In 2004, George Bush beat John Kerry by fewer than 6,000 votes. In 2000, Al Gore squeaked by George W. Bush with less than 400 votes. Gov. Bill Richardson was a rumored vice-presidential candidate earlier this year and is expected to be a front-runner for a Cabinet position, should Obama win the election.

Source: http://news.yahoo.com/s/ynews/ynews_pl130