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Thursday, June 26, 2008

Yahoo reorganizes in strategy shift - International Herald Tribune

Yahoo announced a broad corporate reorganization Thursday that it said would allow it to compete more effectively in the wake of the breakdown of merger and partnership talks with Microsoft.

The reorganization, which has been anticipated for about a week, is the latest in a string of corporate realignments at the Internet company over the last 18 months. It also comes amid a number of high-profile executive departures.

Susan Decker, Yahoo's president, said in an interview that "any organization change is disruptive," but said the move was necessary, and that its planning had begun even before Microsoft announced its bid for Yahoo in February.

"The flip side of disruption is the opportunity for renewed growth and our ability to renew the leadership," Decker said.

The new structure raises the profiles of two senior executives, Hilary Schneider and Ash Patel.

Yahoo announced a broad corporate reorganization Thursday that it said would allow it to compete more effectively in the wake of the breakdown of merger and partnership talks with Microsoft.The reorganization, which has been anticipated for about a week, is the latest in a string of corporate realignments at the Internet company over the last 18 months. It also comes amid a number of high-profile executive departures.Susan Decker, Yahoo's president, said in an interview that "any organization change is disruptive," but said the move was necessary, and that its planning had begun even before Microsoft announced its bid for Yahoo in February."The flip side of disruption is the opportunity for renewed growth and our ability to renew the leadership," Decker said.The new structure raises the profiles of two senior executives, Hilary Schneider and Ash Patel.

Schneider, who oversees Yahoo advertising products and its relationships with other Web publishers, will be in charge of the bulk of Yahoo's operations in the United States. A protégé and close friend of Decker, Schneider joined Yahoo in 2006 and has risen quickly to one of its uppermost management positions.

Patel is a Yahoo veteran, who joined the company in 1996, and was responsible for a broad swath of Yahoo's technology infrastructure. He will now head an "audience products" division, which will be responsible for product strategy and product management for many of the company's key Internet services, including search and email.

Under the reorganization, the company also created an "insights team" chartered with better understanding the needs of Yahoo's customers and partners. The company also expanded its technology organization, creating a group that oversees its cloud computing and data storage initiatives. The technology organization is run by the chief technology officer, Aristotle Balogh, who joined the company recently.

The restructuring essentially splits apart the company's network division, which had been run by Jeff Weiner, an executive vice president who announced a week ago that he would leave. The bulk of Weiner's former organization now reports to Patel. But its media group, headed by the senior vice president Scott Moore, will now report to Schneider.

Brad Garlinghouse, another high-profile executive who is leaving and was in charge of the company's e-mail and communications products, will be replaced by Scott Dietzen, an executive with Zimbra, the e-mail company that Yahoo acquired last year. The executive running Yahoo search, Vish Makhijani, who is also leaving, is being replaced by Tuoc Luong, on an interim basis. Luong, who had worked at search engine Ask.com, will also continue to oversee search engineering efforts.


Yahoo reorganizes in strategy shift - International Herald Tribune

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