Rebuilding Yahoo Is A Long Slog, But Acquisitions Can Help, Says New CEO

March 3, 2009

Rebuilding Yahoo will be a long slog, not a quick repair, said new CEO Carol Bartz, who suggested acquisitions may help.

A prototype of Yahoos new homepage

A prototype of Yahoo's new homepage

Bartz said she’s seen improvements in Yahoo’s ailing search business, and noted that any negotiations on a partnership with Microsoft will be conducted in private, not public.

“We have absolutely stabilized search,” she said at a Morgan Stanley Technology Conference in San Francisco. “We have been investing.”

Bartz, who joined the company in January, went on to say search data is “extremely important” to the company and that she would never “de-bone” Yahoo of that material.

Nonetheless, “everything’s open for examination,” she said referring to Yahoo’s sprawling list of products. The company now has a Wall of Shame, where poorly performing products are placed and where decision to fix or dispose of them are made. (By the way, Bartz said she is a user of Google Maps.)

One new product – Yahoo’s new homepage – is a welcome change, with features to let third-party companies have an appearance and to let users customize it to their tastes. “Our homepage right now is very old fashioned,” she said.

With respect to advertising, some parts of the market are showing stabilization, but “damn straight, it’s a tough business,” she said.

At the same time, the downturn could create opportunities to pick up distressed companies at attractive prices, she said.


Yahoo Promises New Management Structure, Speedier Decisions And A New CFO

February 26, 2009

In her first blog post since arriving as Yahoo CEO in January, Carol Bartz promised a simpler management structure, speedier decisions and a new CFO.

Plenty has bogged the company down, says Carol Bartz

Plenty has bogged the company down, says Carol Bartz

“There’s…plenty that has bogged this company down,” she wrote. “For starters, you’d be amazed at how complicated some things are here.”

The new management structure she outlined, but didn’t detail, will allow for quicker decision-making and eliminate the “notorious silos” that exist within the company. It also will bring in a new CFO. Blake Jorgensen will leave when a replacement is found.

Bartz, who replaced co-founder Jerry Yang, also said she has created a customer advocacy group to better listen to comments and complaints from users and customers.

“After getting a lot of angry calls at my office from frustrated customers, I realized we could do a better job of listening to and supporting you,” she wrote.

Look for this company’s brand to “kick ass again,” Bartz said.


Bartz Says She Has No Plans To Sell Yahoo But Leaves Open Search Sale

January 27, 2009

New CEO Carol Bartz said she didn’t join Yahoo two weeks ago to sell the company.

Yahoo is the best information site on the Web, says Carol Bartz

Yahoo is the best information site on the Web, says Carol Bartz

But she wasn’t as firm about the company’s search business, which has had trouble competing with Google search.

Bartz offered these and several other early insight on Yahoo during a fourth-quarter conference call where the company announced a 1 percent revenue decline and a $303 million net loss.

Yahoo is the “best information site on the Internet,” she said, and that is where its focus should focus be. It’s top properties, incuding its home page, Yahoo Finance and Yahoo News, are keys to keeping people coming for content, she added.

But so are planned new products, which she declined to discuss. “Things will be rolling out as I start to understand them,” she said.

But Bartz insisted that unloading the company was not in the cards. “Did I come to Yahoo to sell the company?” she asked.  “The answer is no.”

Minutes later she elaborated: “This is a fantastic Internet property. It really doesn’t deserve everybody trying to pick and pull it apart.”

But she was less steadfast about Yahoo Search. Search is a valuable part of Yahoo’s business because of what it says about user intentions, she said. And with quality improvements in the past year, its share has stabilized since the third quarter, she added.

The company needs to continue to improve search whether it goes up for sale or not, she said, but “I didn’t arrive here with preconceived notions about anything.”

Bartz said her biggest concern at Yahoo was that “this organization is very complex, therefore it’s hard for people to get speedy answers and make decision.”

It is a problem can be addressed, she added.


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