Semel Steps Down as Microsoft Bids for Yahoo

Trumped by the news of Microsoft’s buyout offer was the resignation late yesterday of Terry Semel as non executive chairman and former chief executive of Yahoo, reports MarketWatch. 

Microsoft offered $44.6 billion to buy Yahoo in an attempt to expand its online business and compete more effectively with Google. The offer was made in a letter sent Thursday by Microsoft Chief Executive Steve Ballmer to Yahoo's board of directors. One person familiar with the matter told the Wall Street Journal that Microsoft decided to "go hostile" with its bid within the last few weeks after Yahoo ignored its latest overtures. The proposal is subject to the negotiation of a definitive agreement between the two companies. Microsoft is saying a deal could close in the second half of the year.

Semel served as CEO of the struggling Internet company from 2001 until last summer, when he was replaced by co-founder Jerry Yang. Semel will be replaced as chairman by current board member Roy Bostock, the company said.

Bostock, who has served on Yahoo's board since 2003, was chairman of advertising agency BCom3 Group and chief executive of D'Arcy Masius Benton & Bowles. Bostock also currently serves as chairman of Northwest Airlines Corp.