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Alan Rimm-Kaufman

Changes Afoot At Yahoo: Reorg Into Three Divisions, but No Layoffs

Title: Changes Afoot At Yahoo: Reorg Into Three Divisions, but No Layoffs
URL: http://www.rimmkaufman.com/rkgblog/2006/12/06/changes-afoot-at-yahoo/
Printed: October 7, 2008
Source: The Rimm-Kaufman Group Blog, info@rimmkaufman.com

Things are a’changing over at Yahoo. Business Week reports:

Yahoo said it’s reordering the company into three groups, effective Jan. 1: one focused on advertisers and publishers, another on Yahoo’s base of more than 500 million users, and a third on technology. Layoffs, which at least one Yahoo executive had called for, are not in the plans. Two high-profile executives, Chief Operating Officer Dan Rosensweig and Yahoo Media Group chief Lloyd Braun, will leave the company in coming months. One source says John Marcom, Yahoo’s senior vice-president of international, also is out. Marcom couldn’t be reached for comment. Chief Financial Officer Susan Decker has moved up to head the new advertising group, fueling speculation that she is being groomed to succeed Chief Executive Terry Semel.

The short-term will be rocky for Yahoo. Wall Street is expecting more of a revenue bump from Panama in 2007 Q1 and Q2 than I believe the new platform will deliver. I predict Wall Street will pummel the stock in response. But Wall Street is always short-sighted. Longer term, I am bullish on Yahoo both as an internet destination and as advertising platform. Yesterday’s announced reorg combined with the new Panama platform are hopeful first steps towards getting Y! back on track.

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