Jerry Yang, the co-founder of Yahoo! will step down as the chief executive of the internet giant, ending a 17-month long turbulent tenure which saw him rejecting a takeover bid from Microsoft.
Yang's decision to step down follows months of criticism from various quarters on a range of issues including his move to shun Microsoft's 47.5-billion dollar buyout offer.
"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," Yahoo! Chairman Roy Bostock said in a statement on Monday.
However, the 40-year old Yang would return to his "former role as Chief Yahoo!"the position for corporate strategy once the successor is appointed, and would continue in the company's board.
Both external and internal candidates are being looked for replacing Yang.
"We are deeply grateful to Jerry for his many contributions as CEO over the past 18 months, and we are pleased that he plans to stay actively involved with Yahoo! as a key executive and member of the Board," Bostock said.
In addition to the Microsoft takeover fiasco, Yahoo!'s much talked about advertisement deal with search engine major Google also fell through, after the latter pulled out citing regulatory hurdles.
Yang in a complete turnaround recently said that merger talks with Microsoft should resume.
Moreover, Yahoo!'s talks with Time Warner's AOL did not materialise.