Yahoo founder Yang quits, leaving way open for "transformation" deal Yahoo co-founder Jerry Yang has surprised investors by quitting the troubled firm, opening the way for a potential deal to transform the once-leading internet player. Yang, who held the title of "chief Yahoo" as well as a seat on the board, had been unpopular with many investors for turning down a takeover attempt by Microsoft which valued the firm at $47.5 billion (£31bn) in 2008. The US firm, one of the best-known names on the web, has been looking for direction after failing to dominate the advertising and content markets and divesting its search operations. Its current market value is about $20bn, largely attributable to its 40 per cent slice of China's Alibaba. Wall Street views Yang's exit as smoothing the way for a major infusion of cash from private equity, or a deal to sell off its valuable Asian assets. Yahoo is thought to have been exploring a deal to unload most of its prized Asian interests in a complex arrangement involving Alibaba, valued at roughly $17bn. Ben Schacter, an analyst at Macquarie, said: "The perception among shareholders was Jerry was more focused on trying to rebuild Yahoo than necessarily on maximising near-term shareholder value. It certainly seems things are coming to a head as far as realising the value of [the Asian] assets. No reason was given for Yang's abrupt departure, but his exit comes roughly a month before dissident shareholders can nominate rival directors to Yahoo's board. In a letter to the chairman of the board, the internet pioneer said he was leaving to pursue "other interests outside of Yahoo." The 43-year-old is severing all formal ties with the company he founded in 1995 and resigning from the boards of Yahoo Japan and Alibaba. The move comes just two weeks after Yahoo appointed Scott Thompson as its new chief executive with a mandate to return the internet portal to the heights it enjoyed in the 1990s. Thompson's predecessor, Carol Bartz, was sacked in September after she failed to revive the company's ailing fortunes. In a memo to employees, Thompson said: "I am grateful for the support and warm welcome Jerry provided me. His insights and perspective were invaluable, helping me to dig deeper, more quickly than I could have on my own, into some of the key elements of the company and how it operates. With the remaining nine directors all up for re-election this year, some analysts yesterday suggested Yang's departure may lead to a wider board shake-up that could see the firm emerge with a more decisive strategic vision. Morningstar analyst Rick Summer said: "It was never clear what this board's direction has been." Yang and co-founder David Filo, both of whom carried the title of chief Yahoo, own stakes in the company. Yang owns about 3.7 per cent while Filo owns 6 per cent.