Major Reorganization at Yahoo, COO Rosensweig To Leave
by Natali Del Conte on December 5, 2006

News from today’s Yahoo executive meeting confirms our earlier story that the company is getting a major reorganization in terms of structure and management. The company said in a press release that they will now align themselves around three key customer segments: “audiences, advertisers, and publishers.”

“The Internet is continuing to grow and evolve at a rapid pace, and we’re reshaping Yahoo! to be a leader in this transformation, just as we did successfully five years ago,” said Terry Semel, Yahoo chairman and CEO, in the release. “Our strategy capitalizes on big emerging trends and leverages our core strengths in search, media, communities and communications. We believe having a more customer-focused organization, supported by robust technology, will speed the development of leading-edge experiences for our most valuable audience segments.”

Yahoo said that their four key objectives will be expanding customer-centric culture, creating leading social media environments, leading in next-generation advertising platforms, and driving organizational effectiveness and scale.

Buried in the release is the announcement about Dan Rosensweig, Yahoo COO, who will depart from the company by the end of March.

These changes come as no surprise, particularly given Yahoo’s recent reputation for not having clear focus. The Brad Garlinghouse memo may have been the catalyst but it’s possible that this is only the ceremonious opening of the floodgates. If Yahoo is really serious about redirection, then no senior executive, particularly Semel, is safe from the chopping block.

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“audiences, advertisers, and publishers” … Ummm … is there anyone else? Why not list “pets, dead people, and kitchen appliances” while they’re at it?

I can’t knock them that hard though, at least they recognize that there’s a big problem with Yahoo, and it’s bigger than something that starts with a G.

Anita

 

wsj reporting that lloyd braun is also out.

 

Oooh, a re-org! Yeah, I bet Google’s really worried right about now LOL

I liked the part where Terry Semel said Yahoo wants to: “speed the development of leading-edge experiences for our most valuable audience segments.”

Semel went on to state that colorless green ideas sleep furiously.

 

ny times also reporting that braun “resigned”

 

I am calling it Yahoo 2.0 :)
http://www.centernetworks.com/.....-announced

Stock is up a tiny bit in after-hours trading, though the news should be felt in the AM.

As I noted in my post, “Drive organizational effectiveness” means “fire/layoff staff” - Remember it’s rare that the execs go first, they are the ones making the rules!

 

Yahoo needs to get rid of Semel. He was a great player in the old media. However, he has failed Yahoo! and its stockholders when it comes to the new media. They need a young energetic leader, hmmm, someone like me :-)

 

Oveall, as a Yhoo shareholder, I am pretty happy with the changes. First and foremost Braun is out. That guy is the biggest turd and was just a dead weight sucking up everything in his sight and spitting out crap. Secondly, Dan Roosenwig is gone as well. That guy from what I heard was a moron. Finally, looks like Semel is going to be out next year with Decker coming on board. I have a lot of respect for Decker and hope that Semel will be pushed out as fast as possible.

 

This blog should recently be renamed to ”

Techcrunch - Michael Arringtons Blog - Run by Natali Del Conte

 

Lloyd can now do a voice over for his own resume: “Previously at Yahoo…”

 

Isn’t Lloyd Braun that psycho sales guy from Seinfeld? The nemesis of George?

 

This is great news and Yahoo needed to change things up and bring in new ideas. You can’t keep doing the same and expect different results.

Now… the only question left is whether Yahoo will make an offer to aquire me before Google. :)

 

What are they focused on now other than the three? How will they become more consumer focused?

 

This question just popped into my head.
Do employees at Yahoo use @yahoo.com email addresses?
Doesn’t seem likely .. so what do they use?

 

Yahoo employees use yahoo-inc.com email addresses. I’m a former yahoo myself.

Funny thing about braun - I was there when he got hired, and there was an article “yahoo gets some braun”…stock up a dollar as a result.

 

jake - yes, the character is named after the real lloyd braun. he once was larry david’s attorney/rep before. i don’t know if the character is based on him, tho. ;)

 

From a Heahunter’s perspective who exclusively within the Web Community, it’s been extremely easy to pull good people out of yahoo for the past 6 months or so. There is a cancer within the company and a few announcements here and there and some org changes as drastic as they seem will not do the trick. Yahoo needs a clear mission and somebody to lead the charge - it’s that simple. Otherwise, their all-stars are gone and I’ll be right there to help them find a new home.

Boris
BINC
http://www.bincsearch.com

 

It’s common especially for a big company such as Yahoo, it happens everyday and everywhere in this planet.

http://www.ezecho.com

 

Lloyd lost a bet with Larry David on the golf course. The wager was that if Larry beat Lloyd in the match, Larry could use his name in some future project. Several months later Larry decided to use Lloyd Braun as the character’s name on Seinfeld without telling Lloyd first. Lloyd was caught completely off guard. All as told by Lloyd himself at a Sales conference in Palm Springs.

 

The Garlinghouse Memo was dead-on. Hopefully, this is, at least in part, a restructuring geared to a more uniform Yahoo. The part that rings true to me is the duplication of services — Yahoo Photos/Flickr, Yahoo Web/del.icio.us. The Yahoo employees not even using their own platform to blog with is also very sad. Hopefully, this is the beginning of a new day for Yahoo!

 

It’s not gonna work. Yahoo needs Semel gone because he’s not technical enough to deal with the search monetization screwups.

Yahoo needs to deploy its advertsing advantages on a grand scale. That’s behavioural targeting in banners, and on it’s site - open it up in an auction market. Focus on being the other great ad company on the net.

http://gotads.blogspot.com/200.....reorg.html

 

i worked with this whole gang (I’m one of the many folks who just couldn’t take it anymore and left), and I’m actually sad to see DanR go, as he was the one person at Yahoo who seemed to actually make decisions in a world of Matrix organizations and ‘too many cooks’ paralysis.

Terry is nothing more than a figurehead, and I’m so tired of seeing articles about his ability to ‘turn around’ Yahoo or do anything, positive or negative, to affect the fortunes of the company. His job is to open doors and look pretty at conferences…nothing more or less. He’s a good leader in the sense that he brought respect and advertisers to Yahoo, but don’t fool yourself into thinking that he gets his hands too dirty.

Sue is a money person, which is a bit dangerous to put in an operational role, as she’ll probably be much more shy about taking risks on acquisitions and moves that might not make financial sense today, but turn out to be genius. Still, she’s probably the brightest bulb in the conference rooms these days.

Lloyd…oh, Lloyd…I can only say that this man is single-handedly responsible for the exodus of probably 100 smart employees. from the reserved parking spots to the shouting to the agents parading through yahoo, he managed to undo 6-7 years of quality products and goodwill towards the big Y with his absolute inability to even try to understand the Web. i still can’t understand why anyone would get 2 years of rope to hang themselves…

as a shareholder and former employee, i hope these changes can re-invigorate the company. firing about 2000 people might also help. mostly, though, i’d just like to see yahoo become a thought leader again, and stop trying to imitate every other player out there. Google is a genius in search, yes, but they’re royally screwing up most of their other products, and if they actually apply themselves, Yahoo can truly own many of the web’s categories.

 
current yahoo employee - December 6th, 2006 at 12:17 am PST

As a current Yahoo employee, I’d say that JD is spot on.

 

Semel needs to go as well as CEO is responsible for Yahoo being in the position they are. I cannot see how he can survive and not the CCO who at least had some sort of tech background with CNet.

 

Then stop using yahoo personal, start using our groupmingle.com for god sake, we almost launched for 4 weeks!

 
 

Guys, don’t fool yourself into believing that a high-level reorg like this will change the way they are run. They need to adjust their middle-management, so let’s wait for that. And that is quite hard to do, because you won’t get talented middle-managers from outside or within, unless you are a ,,cool” place to work for or offer the more cash.

 

Yahoo has big potential to be the leader in the future, they have many great services and will continue to lunch new things.

 

Ted, Yahoo HAD a great potential to become a leader. Their services were valuable only at a time when rival products were expensive to build.

Look around: smaller companies can create great products at a fraction of Yahoo’s cost. Then Yahoo/Google then buy those companies at an inflated price - but that is hardly a good long-term strategy for any of these companies (since the startups become integrated into mothership’s decision-making and overall cost structure and stop being nimble).

 

Continuous flux in glbal and national business environment and technological enviraonment requires that organisations change at a most faster rate than before. Leaders ar required to be more dynamic and competent.
Bye for now,

http://www.tekno-world.blogspot.com

 

Good luck to Susan in her new role.

 

What do you guys think of the Yahoo Research group? (http://research.yahoo.com/) It’s a great research lab, like AT&T in the good-old days.. it will be sad to see it affected by these recent events.

 

As long as they keep doing Hack Days, they’re still OK in my book. I love that idea, and it sounds like they get some good product ideas out of it, in addition to keeping their programmers sharp and raising morale.

Don’t stop the rock, Yahoo.

 

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 MatchTo.com 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.

 

Erin - my guess is that Yahoo will reallocate resources spent on improving their search into other areas. It will cost them too much in the long run to compete with Google in this market - they would have develop a significantly better product than Google to win that game. So they will look at the odds of that and the cost of trying…

Given the biggest problem of Yahoo as of now is monetization - what is that research lab really doing? ;-)

 

The key to Google’s success has been its ability to quickly allow people to syndicate their advertising platform on their own sites, as the relevancy of search results between Yahoo and Google is negligible.

Google clearly won the search monetization game (for now). Yahoo needs to pick up some money from search, but also continue developing good, focused products, which Google fails to do (as they basically have two products: google adwords/search and google maps).

Google is focusing itself as an advertising media play. Yahoo either needs to create or steal content (a la you tube) to increase ad revenues. More importantly, they need to build a more flexible search advertising platform that is easier for advertisers to use and syndicate. Pretty ironic since Google basically stole the Overture idea (and paid for violating the patent).

Another thing to look going forward is disruptions like spam. Currently Google keeps spam under control by not displaying their AdSense customers who create spam . The upshot is that their competitors get overloaded with spam while Google makes pennies on every page. Clever.

 

i like techcrunch, but the losers who create bullshit content just to plug their own company really take from the experience. please do something about that.

 

what do you mean? patent #11,432,239 is going to revolutionize this industry, and yahoo will need it in it’s fight against google. that’s an obvious acquisition anybody should make! luckily people don’t know about it yet.
http://www.pleasebuypatent11432239fromme.com

 

I think the best take on all this was posted over at Good Morning Silicon Valley:

“Hey Terry, ever hear the one about the CEO and the three envelopes?”
http://blogs.siliconvalley.com.....d_som.html

Paczkowski never fails to crack me up.

 

I’m glad to see some change at Yahoo. It’s about time! Here’s another great blog post on the whole shakeup and how Google has managed to crush Yahoo:

http://ryanmapes.blogspot.com/.....-mark.html

There’s also a great chart about where each company’s stock price has performed over the past few months. It pretty much seems the issue right up. I’m interested to see how Yahoo responds after the shakeup.

 

Looking forward to an inspiring and fruitful discussion.

 

i m happy to see some changes in yahoo

 

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