Yang, Yahoo, Yippee!


This Yahoo shareholder is thrilled to see Jerry Yang back at the head of the company he and David Filo founded 12 years ago. Yahoo is a fantastic company with a huge cadre of brilliant developers that have been languishing in no small part because senior management has failed to inspire, reward, and take advantage of the amazing 2.0 stuff that has become the lifeblood of Yahoo’s development efforts for the past several years.

Google has crushed MS and handily beat Yahoo in online profits and search viewership because they 1) still have somewhat better search routines and 2) have taken simple paths and provided user friendly, simple solutions to common problems. Yang knows this and he knows how to fix it. I’m not sure Terry Semel even understood the significance of search and advertising driven computing, and probably did not grasp the significance of social computing which even Google is failing to fully grasp (but is profiting from because of their brilliant contextual matching programs so social networks can display relevant ads). Yahoo’s panama can do this as well if Yang gets *competitive* and does the smart stuff like offer publishers higher revenue shares than Google.

6 thoughts on “Yang, Yahoo, Yippee!

  1. Joe – Do you think this is a temp role for Jerry Yang? Is it sort of a joint leadership role between himself and Susan Decker? I wonder if this is a stopgap solution while they search (externally?) for a new CEO.

    BTW, everyone’s hyped about panama but it’s not the solution. It doesn’t matter if the back-end is changed if the front-end is where the problem is. Fixing the back-end ad creation platform doesn’t address front-end ad distribution problems. Those are twofold: too much low quality syndicated traffic + losing search market share to Google. Those two issues need to be addressed now that the back-end has been repaired.

  2. Pingback: Yahoo Directors Approve "Titanic Deck Chair Reorganization Proposal" | Digital Daily | John Paczkowski | AllThingsD

  3. Richard – Yes, I think Yang’s plans are for longer term. If they are *not* I may be selling my stock. Google’s masterfully used the founders to advantage, motivating them and the company to continued success. Yahoo understood this in 1990 but forgot it along the way.

    Why? * Even billionaires hate to lose big bucks, especially as the Google guys scoop up the limelight and the money.

    * Ego – Brin and Page have effectively made Yang and Filo look like … Yahoos. All these guys are brilliant and I think Yang and Filo probably realized they wanted back in the big player, high stakes internet game.

    Panama: I see what you mean but I think that publishers will flock to Yahoo if they can optimize profits for them. Adsense is about 40% of Google revenue. Yahoo’s leaving most of this money on the table for Google and this is lost on many biz analysts. A smarter Yahoo would bring in developers and publishers and share the wealth to a greater degree than Google. Leveraging the developer and publisher communities could significantly change behavior in the broader user community without much direct action by them.

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