Yahoo's leadership and identity crisis sparked by Google

Yahoo's leadership and identity crisis sparked by Google

Summary: Yahoo's hastily engineered reorganization does away with key leaders within the company:Chief Operating Officer Dan Rosensweig and Lloyd Braun, the head of Yahoo's media and entertainment group, are leaving the company, Yahoo spokeswoman Joanna Stevens said. John Marcom, senior vice president of International Operations, is also leaving the company "soon," she said.

SHARE:
TOPICS: Google
1

Yahoo's hastily engineered reorganization does away with key leaders within the company:

Chief Operating Officer Dan Rosensweig and Lloyd Braun, the head of Yahoo's media and entertainment group, are leaving the company, Yahoo spokeswoman Joanna Stevens said. John Marcom, senior vice president of International Operations, is also leaving the company "soon," she said.

Top Yahoo execs to leave in reorg Tech News on ZDNet

Dan Rosensweig has earned a tremendous amount of respect in this industry. He is one of the few top executives that is able to garner so much positive sentiment from other senior execs. Dan Farber worked with him and is one of his staunchest supporters:

 

Yahoo's Dan Rosensweig heading off for new adventures
My colleague Larry Dignan as well as many others (see TechMeme) have already covered the news about the management shake up and reorganization at Yahoo. I checked in with Dan Rosensweig, the Yahoo COO who resigned as part the reorg. Dan and I go back more than a decade. ...
Posted by Dan Farber in Between the Lines on: Dec 6, 2006 12:52 AM

 

I worked with John Marcom at the Financial Times and he was easily the most impressive executive in that organization. He had a keen understanding of what was achievable and realistic. When he left the Financial Times and joined Yahoo, it shook my confidence in the remaining management team.

I met with Mr Marcom late last year, he spoke about life at Yahoo, how the growth of the business was exhilarating, it felt like being on top of a galloping horse without a saddle. Clearly, that galloping horse somehow slowed lately and the reason seems to lay within Yahoo rather than in the broader market.

Yahoo's leadership crisis and reorganization is directly related to Google's fast paced growth. YHOO's performance would be considered very good against any other metric, but in comparison with GOOG it seems lackluster.

Google's business model is far more efficient because it has shown that using servers and software provides a far more scalable media business than that of Yahoo, which has pursued a hybrid approach relying on a human-plus-machine business model.

Several times, Yahoo has ventured into producing some of its own content, such as its Yahoo Finance video Internet channel several years ago. And more recently, with Patrick Houston, and other journalists brought in to create original content.

[Please see: Yahoo gets content . . .but can it make content?]

Google prefers to create content with machines. It sends out spiderbot armies to harvest content from the open Internet--content created by people but not by Google's people. Someone else is paying their salaries.

What is very troublesome about all of this is this: If Yahoo has trouble competing against Google then what hope have traditional media companies?

Remember, Google is a media company, it publishes pages of content and advertising.

 

SVW on Yahoo Purge and Reorganization:

YHOO news analysis: GOOG is setting the pace as Yahoo faces identity and leadership crisis

Back story: Did YHOO break it's own embargo? The reorganization is not finished...

12.6.06: YHOO's half-measure reorg

Breaking news: Late in the day, Yahoo issues reorg, heads roll...

 

 

 

 

 

 

Topic: Google

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

1 comment
Log in or register to join the discussion
  • Yah-Doom

    People in search have been screaming for years now that media companies are doomed. Yahoo is doomed, and God help "efforts" like Ask.com. Fat-cat baby boomers raised in the glow of Madison Avenue's heyday yap about "engagement" and "the creative" and "brand power" and other crap. It's all going away, replaced by truly usable, useful, and brilliant systems that bring transparency and financial accountability to the ad process, and target those ads more closely than any other ads in history. It's understanding that a dollar from a million sites (adWords) is much better than a million dollars from one site (a stupid banner from Target). It's understanding that at bottom no one gives a crap about your "creative vision" for dancing toilet paper; instead, make it easy to buy the toilet paper at a good price when people have indicated they want to buy some. It's no apparent internal conflict. The horrible floating banners Yahoo is putting on its home page are obviously the result of some internal group's political victory: they break every usability rule, are not relevant or targeted, and just...look...ghetto, like Geocities in its heyday. What would you think if Deloitte people showed up to your meeting in sweats?
    Finally, it's understanding that you are in the Internet business, not the newspaper-on-a-computer business. (See the dollar-from-a-million, and Chris Anderson.)
    They're not only shedding talent, they can't attract it either. The world has changed; as a search marketer, I am beginning to think that Yahoo!'s business model may have been eclipsed. I'm honestly not sure if it can be fixed.
    Pleroma