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December 06, 2006





This is a meaningless change. It's amazing how much Yahoo reminds me of MSFT these days (having worked at both places). The problem is rarely organization. It's sometimes people. But frankly it is more likely a complacency that sets in once you've peaked, once your stock has peaked, and once your vested options have peaked. Nothing could get MSFT to be aggressive now except 20% personnel cuts and I continue to feel this is the way out for YHOO.

Steve M.

Nice, bold moves from a great company, Terry and the Yahoo team.

If I may humbly suggest another:

The launch of a brand new ad platform where you'd enable your advertisers to quickly and easily select and bid on the actual demographic and psychographic traits and characteristics (keytraits) of their most desired customers; instead of just the words people enter into search boxes.

As explained in the white paper at and detailed in it's pending patent (#11/250,908), Match Engine Marketing (MEM)/paid match would, among other things, enable Yahoo to stop Google in its tracks (while taking 10%+ of their search share), further boost the use of your many other excellent products and services, and cut human-generated click fraud by 85%+; doing so w/in 24 months of the launch of MEM (i.e. Yahoo Match Marketing).

Like paid search did before it, paid match is itself going to turn the world of advertising upside down--again.

Yahoo should be at the helm when it does.


are you kidding me? Sue Decker in charge? A CEO needs to be an inspirational leader who has a passion and understanding for products. Sue is neither. Come on Henry you should know that better than anyone. Bring on a Jeff Mallett. Someone who is truly inspirational, knows product and will kick some butt

Henry Blodget

I haven't worked for Sue, so I don't know about the inspirational part. I also don't know about her product expertise. What I do know is that she is extremely professional, disciplined, smart, and competent and that she has done a superb job at Yahoo and at DLJ. I also don't think she would have any problem "kicking butt" (which, in this case, I assume means firing 20% of the work force).

Sue's biggest challenges, I suspect, will be to figure out a way to recruit and retain the top tech talent that Yahoo desperately needs to compete with Google, as well as to get the company back in fighting shape. Part of her ability to succeed in this, I think, will be the amount of latitude Terry gives her. Personally, I hope it's a lot.


Henry, I really have to disagree with you on this one. Yahoo is losing to Google because they're competing against a company that is head-to-toe engineering and is out-innovating Yahoo at every single step. Yahoo will only recover its lost glory if it realizes that bleeding its best engineers away is a problem it must solve. Yahoo is NOT going to beat Google by out CFO'ing them. It has to out-engineer them.

I think the loss of Rosenweig and the rise of Decker is a terrible sign for Yahoo and will signal a continued decline in their services relative to Google

Steve Terjeson

I think that Yahoo is really in a hard place right now. This could be the first step forward or backward depending on how they handle and spin it. I wrote a review of the BusinessWeek article that described the whole shakeup on my Ironvine Search Marketing site. I'm hoping that they can manage some growth and improvement in structure so they can keep some market balance between the big G and the rest of the search world.


Sue double majored computer science and economics at Dartmouth college. I think she can become technical if she has to. I believe she can be successful if Semel steps aside.

Still Inside

We'll see if this "Sue" person will give us anything different. The top-level-didn't-read-the-article thing I read today was that YHOO was being split into a "users" division and a "advertising" division.

Two things to focus on instead of dozens. No more peanut butter. Etc. Etc.

Without knowing that much about the internal politics of YHOO, I'd venture to guess that this new division has more to do with politics and individuals than it does about righting the company.

The very notion of this division points out that the top management there still doesn't get it: like the AOL leadership, and the typical worldview of Hollywood types, it's a classic "content versus revenue" stance.

On the Internet, unlike TV, users don't have to suffer in order for you to make money. Search engine PPC ads are USEFUL FEATURES for people trying to find things, not annoying disruptions that users are forced to look at before they are allowed to look at what they really want. This is why PPC makes so much money.

All that said, I'm getting more and more used to the idea that YHOO is, strategically at least, a goner. If this is the case, they should actually dump the Y! Search backend and hook it up to Google instead. They'd make more money off of search monetization, aguably more money off of search in general, and they'd be able to trim the payrolls rather smartly by getting rid of thousands of workers in search, paid search and site operations. Sounds like a nice scenario for YHOO stockholders.

Stategically YHOO would be dead meat since Google will essentially own them, but if that ship has sailed anyhow, then at least this would salvage some stockholder value.



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