Yahoo Inc. co-founder Jerry Yang has lost about a half-billion dollars on paper after failing to regain investor confidence since taking over as the Internet company's chief executive in June.
Yang, the fifth-biggest Yahoo shareholder with about 4% of its shares outstanding, has seen the value of his stake sink by about a third to $1 billion in the last seven months.
Shares of Sunnyvale, Calif.-based Yahoo sank $1.76, or 8.5%, to $19.05 on Wednesday after the company late Tuesday reported an eighth straight quarter of declining profit, announced 1,000 job cuts and issued a sales forecast that fell short of analysts' expectations.
Yang and his co-founder, David Filo, joined the billionaire ranks in 1999, when the technology boom lifted Yahoo shares more than threefold. Forbes magazine put the duo's worth at about $4 billion each before the stock market crashed in 2000, wiping out 86% of Yahoo's value. Last year, Yang was tied for 261st on the Forbes list of richest Americans published in September, with a net worth of $1.9 billion.