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12/05/2006
  Yahoo Reorg
CEO Terry Semel is staying. COO Dan Rosensweig is not.

Yahoo reorgs into three groups. CFO Susan Decker gets operational control of the "Advertiser and Publisher" group. Farzad Nazem, who's been there FOREVER, gets all of technology. And they're gonna bring in someone to run the content side (Audience) group. (Good luck with that, btw).

Who's not on that list? One missing name is Semel golden boy Jeff Weiner, who was responsible for search when Yahoo! Search didn't get fixed. The infamous Lloyd Braun, another Semel guy, has been non-grata for a year and is now gone. And Brad Garlinghouse - who cares?

My initial reaction to the reorg is: Close, but no cigar. Semel isn't the answer. My main reason for this is that he's been too patient with the problem child: search advertising, even though the Overture team is in his backyard down in Pasadena. Fundamentally Terry Semel doesn't have the technical chops to kick the right asses at Yahoo.

Decker is a good choice to run the ad business. But 'Zod in charge of technology isn't really a change of any kind.

Losing Rosensweig is probably not a benefit, though.

Here's what Yahoo should do:

Can Yahoo do it? I doubt it. I think Semel is the wrong quaterback, and lacks the confidence of the team. I don't think the re-org is radical enough.

 


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