Ya h o o

VS Joe Bongiovanni, Frank Natale, Parth Patel, Jonathan Rego, Justine Young

March Larry Page & Sergey Brin (Stanford) August First funding secured June $25 mil round of equity funding March (reluctantly) hire first CEO Eric Schmidt -CEO tenure 3/01-1/11 August IPO ->19.6mil $85 ($1.7b) -NASDAQ -> GOOG April Larry Page becomes CEO (current ) Fun Fact: “Google” the result of googol being misspelled. (googol = 1 followed by 100 zeros) January Jerry Yang and David Filo (Stanford) April Two rounds of fundraising ~$3mil April IPO ->2.6 mil $13 ($33.8m) -NASDAQ -> YHOO CEO History (8 total since 1995) Fun Fact: Originally called “Jerry and David’s Guide to the World Wide Web”… changed to “Yet Another Hierarchical Officious Oracle” T. Koogle T. Semel J. Yang C. Bartz T. Morse S. Thompson 2012 R. Levinsohn 2012 Marissa Mayer 2012-

5 year growth Operating Profit Margin‘14 Net Profit Margin ‘14 Operating Cash Flow ‘14 Net Income ‘14 ROE ‘14 Cash Flow Margin ‘14 P/E current Industry Avg P/E % 24.3% 26.3% $6.4B $4.9B 15.1% 15.5% 25.6 Stable 6.5% 11.2% 13.3% $111M $166.3M 26.84% 3.4% 6.2 Volatile

-Started by 2 Stanford PhD Students in the early days of the internet (mid 1990’s) -Started as search engines -Started in a garage (Google) and a trailer (Yahoo) Leadership

Talent Management Acquisitions

163 Companies $28 Billion 15 Years

August 2005 $50 Million Mobile OS

March 2008 $3.1 Billion Online Advertising

October 2006 $1.65 Billion Stock Video Sharing

Larry Page – CEO - Larry Page walks into the lab… - Willing to take risks - Have a hand in everything - Critical of the company’s progress - “Don’t be evil” - Business for a better future

David Filo Jerry Yang Yahoo refused to be called a technology company.

Flickr was valued as a database, not as a social networking community and asset.

8 Yahoo CEOs in the past two decades Tim Koogle Terry Semel Jerry Yang Carol Bartz Tim Morse (Interim) Scott Thompson 2012 Ross Levinsohn 2012 (Interim) Marissa Mayer 2012-Present

A company as large as Yahoo needs clear perception of what it stands for and where it wants to go.

Marissa Mayer

Great Student Excellent Academic Record Excellent History at Career at Google – More Technical Exposure – Employee #20 at Google Being new CEO of struggling enterprise

Marissa’s leadership skills and influential effectiveness are questionable.

“Good students are good at all things?” EQ is just as important as IQ.

Lecturer hating to get feedback

Micro-Manager – Has more than 2 dozen direct reports – Involved in all decision making processes

Should not apply to everyone – Instead, create trust and align values – If you think workforce is unproductive, either coach them or let them go – Place isn't going to change people’s nature – Google has more remote workers Each worker generate $931,657 revenue vs Yahoo’s $353,657 [2] [2] – Top talent will leave where they are more empowered

– classic way of treating the symptom and not the problem – Recklessness? – Inexperience – Regressive decision?

Lack of Trust Inexperience Arrogance Insecurity Poor Judgment

It’s very different being employee number 20 than being the new kid on the block and moving into a house that’s already on fire [1] [1]

Yahoo’s employees to feel a lot like abused children – They don’t know who to follow or what to expect – Mayer has to earn the right to lead before she leads – No one is going to follow her until they believe she’s going to survive

-In the world of the web business, it takes 100 observations to make one action -Monetization through ad clicks (~95% for Google, ~80% for Yahoo) -Human minds require time to focus

Scan 100 headlines on a news site and read some THEN look through 100 profiles on the dating site THEN look through 100 flight options and THEN look through apartment listings on real estate sites, or…. Would you read one article, followed by reviewing one dating profile, followed by reviewing just one listing of a flight followed by reading one apartment listing THEN going back to read another article, another profile, another flight, and another apartment listing THEN repeating this 98 times?

“to organize the world’s information and make it universally accessible and useful” Concentrated in one stack of information – intentions – inferences – interactions

Too many different KINDS of things… with too many different KINDS of customers… and despite the evidence that all of these different options made their customers brains hurt… YAHOO!’s Leadership fail to have the guts or insight to refocus on things the consumers can understand.