A force for change at Yahoo

(continued from previous page)

In many ways, sources say, Decker had been telegraphing her concerns for some time, and her new role indicates that Semel is listening. Her remarks nearly a year ago reflected her longtime belief that Yahoo should not be chasing after Google in the search game. Instead, it should be focusing on building Yahoo's already popular network while bolstering search advertising and performance on its own turf, according to former Yahoo executives.

Those sources said Decker had long been bearish about investing heavily to win search-distribution partnerships away from Google because its rival could produce higher financial results from sponsored listings. Technologically, Google had surpassed Yahoo at optimizing ad revenue. Therefore, Google was prepared to give away a higher percentage of the profits to third-party partners like AOL, MySpace.com and others in the pursuit of gaining market share. Decker believed, according to one former insider, that giving away the farm to win deals from Google was foolish.

Instead, she believed Yahoo should focus on delivering search results and advertisements to its own visitors, because as the top destination on the Web (in one recent survey, MySpace topped Yahoo), Yahoo could remain focused on itself, not Google.

Still, Decker appeared to be outvoted at Yahoo, former insiders say, and Yahoo double-downed in search. "The fact that she wasn't onboard could have been strategically very correct," one insider said. Now, as head of search-distribution for Yahoo, it remains to be seen whether Decker still believes that Yahoo should be cautious when it comes to striking third-party partnerships.

Former colleagues say Decker has great strategic sensibilities and understanding for Yahoo's position in the market. Among peers, the 44-year-old mother of three is thought of as the prototype of the perfect working woman. Yet to some, her intelligence can be intimidating. "She's going to figure out quickly what needs to happen and she'll probably be right," said one former colleague.

Decker has been at Yahoo for six years. She came from investment bank Donaldson, Lufkin & Jenrette, where she helped Yahoo go public and was an equity research analyst covering media, publishing and advertising stocks for 12 years before being promoted to research director. Current and former co-workers have high praise for her steady financial hand.

"I think she has a lot of credibility within Yahoo and is known for being buttoned-downed, disciplined and even-keeled," said Doug Hirsch, former general manager of entertainment at Yahoo who left in July 2005 and founded health-related social-networking site DailyStrength.org.

But the next year will be telling for both Yahoo and Decker's futures. Youssef Squali, an analyst at Jefferies & Co., said it will be interesting to see Decker in such a key operational role.

"She hasn't had much of an operational track record yet, but she was certainly successful as a CFO," Squali said. "She's built a large following and credibility with the street, which means the street will give her the benefit of the doubt for a while."

Insiders say that with Decker's new role, Yahoo will likely focus on strengthening what makes the network different to consumers.

Also, sources familiar with Yahoo's workings expect there to be a reorganization to rationalize all the redundant positions, both throughout the company and between Santa Monica and Sunnyvale. That action would fall in line with Decker's tendency to keep costs tightly under control, sources say.

"She's got a tall order in front of her, whether it's rallying the troops and boosting morale or deciding what to do (with) the competitors," said Mark Hull, a former Yahoo product management director who is now vice president of marketing at casual game site iWin.com. "Whether it's her or Terry (Semel), those challenges are pretty self-evident."

[hitsman]

Inaccurate

This statement is not accurate:
"In one example of such issues, the music services Yahoo Music and Musicmatch--a paid music service that Yahoo acquired years ago--haven't historically been under a central group's control, creating overlaps in workforce."

Yahoo! Music and MusicMatch have been managed by the same team since MusicMatch has been acquired. I know this because I am on that team.

[Dachi]

Yahoo still does not get it

I once posted on this site about how I eagerly tried to sign up for Yahoo launchcast plus as was so appalled by the behavior of the software on my machine that I canceled the service within a day of having to use it.

Not long after my post I see this story basically saying that some of the winning design decisions I loved so much with Launchcast plus ended up in messenger: http://news.com.com/Yahoos+IM+update+A+Trojan+horse+of+surprises/2100-1038_3-6144286.html

This only outlined that even as recently as 12/15/06 Yahoo is not thinking about the customer at all.

Now Yahoo is going to appoint their CFO to lead search because she has a good working relationship with wall street and might be healthy for the stock price?

This again reinforces my perspective that they are an investor-centric company, and not user-centric at all.

Her comments about Yahoo never catching Google on search are likely true, but her comments also hint that she likely has no intention of trying either.

By "focus on current users" she does not mean enhancing their experience, she means forcefully milking more from them like Yahoo messenger forcing all that is Yahoo on their PC's with or without user consent.

This behavior will grant her the short term numbers she is looking for on her next quarterly statement and improving tomorrows stock price, but it does little to sustain their long term market share and brand name.

Not that she would care anyway, if the investors cash out first they don't care, and as long as she gets get bonus and multi-million dollar severance package she does not care, she can just move on to the next company touting her impressive relationship with Wall Street and probably get a signing bonus to chace away their customers and railroad that company too.

[timoteo21]

Re: user-centric

<This again reinforces my perspective that they are an investor-
centric company, and not user-centric at all.>

In the long run, all companies serve the master who pays the
bills. In today's Internet, that is primarily investors and
advertisers. As long as consumers opt for a free ride, they will
get what they pay for.

[Broward Horne]

It wasn't "Suddenly Wobbly".

The shakeup was predictable one year ago.

Comparison of traffic for Yahoo, MSN, Google and Baidu. In general, the search engine market is probably approaching saturation and it appears to be breaking down into differentiated engines -

http://www.realmeme.com/roller/page/realmeme?entry=search_engine_comparison

[Des Alba]

Yahoo Message Boards draw visitors

The recent cutback to support discussion on the Yahoo Message Boards has and will cost Yahoo dearly. Visitors were drawn to Yahoo and supported Yahoo for its freebies. The disappearance of the "Discuss" option has been the hot topic around many watercoolers since Dec 20th.