Yahoo Repositions Semel.

Yahoo (Nasdaq:YHOO) finally shook off Semel. One is reminded of the Marley inspired tune that goes "I shot the sheriff but I did not shoot no deputy" Yes after six years Semel was not successful. Yahoo avoided a Nardelli style whirlwind by keeping Semel around to avoid triggering another obscene compensation package controversy.

Jerry Yang co-founder takes over the CEO duties and Susan Decker advances another step upwards. But its all Semel's fault. The board who let him operate for six years did nothing until shareholder activists and investors at large started to heap scorn and contempt on Semel for getting whooped by Google.

Be yee afraid as the Semel excuse no longer exists. Yahoo may pull out of its death spiral and become respectable. Google (NASDAQ:GOOG) has become strong because it played against a weak competitor. That probably will change now and Google may have to become more of a street fighter.

There is too much controversy about potential deals for Yahoo. One speculation more interesting than the last rumor. The true test of Yahoo's future prospects will be employee loyalty. Yahoo has been bleeding talent. If this wound heals and morale is restored than we have something. Watch for a short term patch with increased stock options and other goodies for the troops.

Any merger deal will have to keep the Yahoo troops financially motivated.