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Marissa Mayer's Reinvention of Yahoo! Stumbles

schnell writes The New York Times Magazine has an in-depth profile of Marissa Mayer's time at the helm of Yahoo!, detailing her bold plans to reinvent the company and spark a Jobs-ian turnaround through building great new products. But some investors are saying that her product focus (to the point of micromanaging) hasn't generated results, and that the company should give up on trying to create the next iPod, merge with AOL to cut costs and focus on the unglamorous core business that it has. Is it time for Yahoo! to "grow up" and set its sights lower?

50 of 222 comments (clear)

  1. How long things take.. by TechyImmigrant · · Score: 4, Insightful

    People who don't make products have no clue how long it takes to make a product. Their attention span is always shorter. This is an example of someone complaining because their attention span is shorter than the development cycle.

    --
    I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    1. Re:How long things take.. by roman_mir · · Score: 5, Insightful

      Marissa Mayer is not a good CEO, she maybe was a useful engineer at Google, but she is a horrendous CEO at Yahoo! When Yahoo! outbid FB by a few hundred million to buy Tumblr it was clear, there is no plan. But there was no plan from the beginning.

      I'll explain. You come to a new company as a CEO, WHAT DO YOU DO? What do you do first? What would YOU do? You know what I would do (as a CEO)? I would immediately run an inventory of what I have in the company, what do I have to work with, who makes money in the company, who does not make money, what investments are out there, what products, services, people, holdings, cash is out there.

      I would want a recount and fast.

      Then, as a new CEO I would definitely concentrate on those parts of the company that actually make money because those parts have already done the HARD work of figuring out how this company makes money right now.

      Mayer didn't pay attention to the content generating part of Yahoo!, which is the part that actually earns them revenues at all, she didn't give a shit that there is a part of the company that brings in over a billion dollars a year. A BILLION dollars a year and she didn't care to figure out how that's done and how to boost it before doing anything else that TAKES money, any new investments can only be done once you understand your cashflow and you know that you can actually withstand the spending that goes into the investment.

      Marissa Mayer was not hired as an engineer to build products, she was hired as a CEO, as a director to direct, to create strategy for the company. Yes, that means coming up with product ideas as well, no, it does not mean coding (which is what she ended up doing herself in many cases), that's a waste of time for her. She should be looking at markets and clients and making sure that her current accounts don't fall off the face of the earth, instead she didn't pay any attention to her advertising income (she stood up her largest clients), her content generating income (didn't even notice them apparently).

      The only saving grace for Yahoo! was their Alibaba 1Billion USD investment that brought them money and investors, who used Yahoo! to invest into Alibaba indirectly.

      As to products, what products? The fucking piece of shit Yahoo! account that I have (from old days) is horrible on Firefox under Ubuntu 11.04 that I still run on my laptop.

    2. Re:How long things take.. by tjb · · Score: 4, Insightful

      "no, it does not mean coding (which is what she ended up doing herself in many cases)"

      Tell me you're exaggerating... if that's true, wow, she should have been fired on the spot by the board of directors. The CEO of a multi billion dollar company has lots of responsibilities, writing production code is NOT one of them. If she can't trust the engineering teams to do that, she should hire new engineers, not write the code herself.

    3. Re:How long things take.. by phantomfive · · Score: 3, Interesting

      The CEO of a multi billion dollar company has lots of responsibilities, writing production code is NOT one of them.

      And that is why I hope never to be CEO.

      --
      "First they came for the slanderers and i said nothing."
    4. Re:How long things take.. by Anonymous Coward · · Score: 3, Insightful

      If she was a man, she would have already been fired. Now Yahoo is stuck with her. Fire a female CEO and the SJWs will get you.

    5. Re:How long things take.. by coofercat · · Score: 2

      If I was hired as the CEO, the first thing I'd do is whatever the hell the board asked me to do.

    6. Re:How long things take.. by roman_mir · · Score: 2

      How about I prove you wrong in such an embarrassing way that you will have to eat your words? I have that account because at some point I bought Rogers Internet service, and email was part of what I was buying in the package. Eventually Rogers outsourced their email to Yahoo!, so I have an email account that is paid for and that I never imagined would be handled by Yahoo! I am actually a paying customer, you dumb shit.

    7. Re:How long things take.. by roman_mir · · Score: 2

      No, not exaggerating, she codes, she sketches, she does a ton of stuff that should be done by people who specialise in it.

  2. Yeah, don't focus on products. by serviscope_minor · · Score: 4, Funny

    Sounds like a plan.

    Products are for suckers.

    They should focus on social clouds for wearable augmented reality drones.

    --
    SJW n. One who posts facts.
    1. Re:Yeah, don't focus on products. by oodaloop · · Score: 4, Funny

      They should focus on social clouds for wearable augmented reality drones.

      I find your ideas intriguing, and would like to subscribe to your social media RSS news twitpic feed.

      --
      Tic-Tac-Toe, Global Thermonuclear War, and relationships all have the same winning move.
    2. Re:Yeah, don't focus on products. by Dragonslicer · · Score: 2

      Sounds like a plan.

      Products are for suckers.

      They should focus on social clouds for wearable augmented reality drones.

      Dude, "wearable augmented reality drone" sounds like a fucking awesome product.

    3. Re:Yeah, don't focus on products. by gman003 · · Score: 2

      Can I use my AR social cloud drone to find Uber rides to my local hackerspace? I need to build a rack of Raspberry Pis to mine cryptocurrencies with.

  3. Respect for Trying! by BoRegardless · · Score: 2

    You can post all day on Slashdot, but that isn't like putting your professional life on the line and giving it a go.

    1. Re:Respect for Trying! by kuzb · · Score: 4, Interesting

      She's worth 300 million. What exactly is she putting on the line again? If every single one of her enterprises failed tomorrow, she'd still be set for several lifetimes. Her risk is exactly zero.

      --
      BeauHD. Worst editor since kdawson.
    2. Re:Respect for Trying! by rogoshen1 · · Score: 3, Insightful

      yeah but for the C-level type A personality, money is just a yardstick. It's not the goal in and of itself.

  4. Re:Is Yahoo! still a thing? by Anonymous Coward · · Score: 5, Insightful

    I still use them. I've been using them since Yahoo started free email service. It's gotten a lot worst. Can't display emails when it's clicked due to javascript and loading issues. non-responsive mobile app where the latest information is not loaded even with full bars and full wifi and you drag down to update. Deleted emails still on display screen and can not display new emails, have to reload page. The so called new features just made things worst. trying to contact support is just near impossible and they don't get back to you. I'm slowly transferring my emails out of yahoo so it will only be marketing emails left going there.

  5. It's time by koan · · Score: 2

    To fold up the business, I'll say it again there's no future for Yahoo, it's amazing to me it's even around any longer.

    --
    "If any question why we died, Tell them because our fathers lied."
    1. Re:It's time by phantomfive · · Score: 2

      No offense to AOL, I don't even know that they do anymore I just know public perception

      You don't know, but unless you have ad-block you probably have some of their cookies in your browser.

      AOL had a ton of cash (still gets something like $50 million from dialup) after people switched to broadband, so the turned into a kind of venture capital, and bought a bunch of companies. Now they own leading 'web properties,' like Huffington Post and Tech Crunch.

      AOL is producing a lot of 'high quality' content and can monetize it, whereas Yahoo is lacking in content, but has plenty of users. That is the thinking behind the activist investors who want to join the two together.

      Other than a few activist investors, no one in either company wants to join together, as far as I can tell. The CEO of AOL says, "We've already been through one really bad merger, we don't want to do it again."

      --
      "First they came for the slanderers and i said nothing."
  6. Re:Yahoo is trying to create the next iPod? by Dan+East · · Score: 2

    It's called the yNot.

    --
    Better known as 318230.
  7. Missed the Boat by about 15 years by Irate+Engineer · · Score: 4, Interesting

    Yahoo missed the boat about 10 years ago. It can't even do web email properly anymore. I have a Yahoo throwaway account, and the system is so broken that I rarely check in on it. It's right up there with AOL; it shouldn't have survived Y2K, but somehow it is still here, twitching and gasping

    Marissa Mayer may or may not be very capable, but it hardly matters. Trying to get Yahoo to compete in online services and products in this day and age, starting from where Yahoo stagnated in the late 1990s, ain't going to happen. Frankly I think the best use of her time would be to start folding up the tables and chairs, turn off the lights, close up shop and sell off the company.

    --

    Left MS Windows for Linux Mint and never looked back!

    Vote for Bernie in 2016!

    1. Re:Missed the Boat by about 15 years by CanadianMacFan · · Score: 2

      Don't be so hard on them... their weather app for the iPhone is nice.

    2. Re:Missed the Boat by about 15 years by kaiser423 · · Score: 2

      Yahoo fantasy football is still about the best around. Same with their sports apps. They bought up Sportstacular and haven't ruined it (it's actually gotten quite better since the acquisition), so those are great. But not enough to keep it aroudn forever.

    3. Re:Missed the Boat by about 15 years by DerekLyons · · Score: 4, Interesting

      Yahoo fantasy football is still about the best around. Same with their sports apps. They bought up Sportstacular and haven't ruined it (it's actually gotten quite better since the acquisition), so those are great.

      Yep. And their Stock, business, and financial management pages are top notch too... (to the point where Google has finally given up even trying to compete). Then there's Flickr, which, despite a few missteps, is still the largest and best photographic community out there. Etc... etc...

      Yahoo! maybe not be where the cool kids hang out, and it's hasn't been on the tech hipsters hot list for over a decade... but it's far from down and out.

  8. Core business? by LordLucless · · Score: 4, Insightful

    ...merge with AOL to cut costs and focus on the unglamorous core business that it has. Is it time for Yahoo! to "grow up" and set its sights lower?

    What exactly is Yahoo's "core business"? Their webdirectory is defunct, search outsourced to Bing, and email largely been eaten by its competitors. I would have thought "settings its sights lower" would have involved winding up the company.

    --
    Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
    1. Re:Core business? by Tiger4 · · Score: 2

      What exactly is Yahoo's "core business"? Their webdirectory is defunct,....

      Not quite defunct yet, but very, very soon ... http://www.engadget.com/2014/0...

      --
      Behold, this dreamer cometh. Come now, and let us slay him... and we shall see what will become of his dreams.
    2. Re:Core business? by swb · · Score: 3, Interesting

      I thnk their core business WAS the web directory but that seemed to become irrelevent and less useful once Google came around. Their age and size has allowed them a certain amount of inertia with users who simply don't know or care for anything better.

      I think there's some value in a high-quality curated web directory. Given what Wikipedia accomplishes with volunteers and no advertising, I would think that Yahoo could have come up with some way to basically pay people to browse the web and curate a directory given the money they have to spend.

      Google search is better in some regards and use cases but in some ways, if it isn't on the first page of results it probably won't be useful, especially if you don't know what to search for or are looking for a class of information or type of web site.

      But they seemed to have given up on that in favor of "web services" which they probably can't ever compete with. Their technology isn't competitive, they don't have any media clout and nothing unique to offer.

    3. Re:Core business? by Todd+Palin · · Score: 2

      As "Irate Engineer" hinted, providing throwaway email accounts just might be their core business. Everybody has one, right? And you don't want to have your throwaway be a Gmail account, so you choose Yahoo. Hotmail doesn't still exist, does it?

    4. Re:Core business? by Irate+Engineer · · Score: 2

      Yeah, but you can actually setup multiple disposable GMail accounts now, so Google is even whittling away at that.

      My yahoo account is from the 1990s, and I still have it because I'm lazy, it does what I need it to do (it's a legit email address, that's all that can be said about it), and I'm not liable to inadvertently confuse it with my "good" GMail account, so it is what I give out online.

      If Yahoo evaporated in a puff of smoke tomorrow I'd probably miss it for all 5 minutes it would take to setup a GMail throwaway. And nothing of value would be lost

      --

      Left MS Windows for Linux Mint and never looked back!

      Vote for Bernie in 2016!

    5. Re:Core business? by Anonymous Coward · · Score: 5, Informative

      Not anymore. Yahoo requires (yes, requires, no barely-visible option to skip) a cellphone number to sign up. Because putting your only-above-AOL-mail service behind a gate that requires giving personal information to a company infamous for shit security is a good idea, right?

  9. Bewitched? by danomatika · · Score: 2

    Has she even had enough time? Did they expect her to have a magic wand or twiddle her nose when she was hired? Short-term investors just need to pucker more.

    1. Re:Bewitched? by Comrade+Ogilvy · · Score: 2

      According to the NYTimes article, she has had two years and the prospects for the stock look flat. Two years is a long honeymoon for a CEO. Is it long enough? Probably not. But if she cannot point to a reason for gross revenues to do better than flat in the near term, then two years or four years, it hardly matters.

    2. Re: Bewitched? by afgam28 · · Score: 4, Insightful

      If they're comparing her to Steve Jobs and expecting her to create Yahoo's iPod, then it may be worth pointing out that Jobs returned to Apple in 1996 and the iPod wasn't released until 2001. Two years is a long time but sometimes great products take even longer than that.

    3. Re: Bewitched? by cheesybagel · · Score: 2

      Steve Jobs was brought back because MacOS Classic was a steaming pile of shit and they needed NextSTEP. Once he came on board they came up with the iMac and MacOS X pretty quickly. They also knifed the 3rd party cloning business which meant they had more profits to them. He was a bastard but he knew how to make money.

      At that time the company was doing okay. The rest was just icing on the cake.

  10. Synergies through Mergers and Acquisitions by aralin · · Score: 4, Insightful

    If we only provide value through synergies resulting from M&A activity, we will eventually end up with one large company spanning the entire state and will have the perfect example of communism :)

    --
    If programs would be read like poetry, most programmers would be Vogons.
  11. it's not hard by jetole · · Score: 4, Informative

    It can be done. Yahoo has the resources and man power to get there but micro managing was mentioned and that's a key problem right there. I have worked with micro managing managers and I have worked with well informed managers who keep abreast of things and is course I have worked with bad managers. Since I have begun managing myself I have seen great results and I DO NOT micro manage. The best managers I have ever had which have lead me to how I manage now are involved and aware and make key management decisions but they do not micro manage and that was key. I do not micro manage and I have seen steady and excellent growth in our business due to how I operate and how the best managers before me operated has lead me down that path. You take micro managers and they are persistent firm of stress in the workplace. They are invasive and cumbersome. On the other hand I have had managers that are the opposite end of the spectrum where they were not involved enough and/or didn't understand the decisions as best as they should have. They lead to very poor management decisions. A good manager not only knows what is best but knows where to ask and where to trust and speaking of trust you need to know your team well so that you can effectively trust their decisions.

  12. Is she a good manager or a PHB? by Comrade+Ogilvy · · Score: 5, Insightful

    It some ways, I think Mayer's is a great fit for the job. But in others, well, the NYTImes article painted a very unfavorable picture of her ability to hire or manage compensation policy. The other problem is that, as TFA article points out, the core Yahoo business has shrunk to a 5-10 billion dollar company in a mature industry and zero prospects for rapid growth. Yet she was hired wave a magic "reinvent" wand and return the company to 100 billion dollar glory -- that is not a problem with Mayer, but the Board.

  13. My thoughts by Lirodon · · Score: 2

    Just spin Tumblr back out and sell the rest to AOL.

  14. My 0.02 by DaMattster · · Score: 2

    It looks as if Marissa Mayer's micromanagement style might've backfired. For one, she probably killed moral for the people that enjoyed the perk of working from home. Her failure will be an ultimate win for Yahoo. Micromanagement NEVER works!

  15. Re: Is Yahoo! still a thing? by Karlt1 · · Score: 5, Interesting

    Why do people like to brag about their ignorance and pretend that it's insightful? Yahoo is the 5th most visited site in the U.S. according to Alexa. It's ahead of Wikipedia. Would you ask was Wikipedia still a thing?

  16. Show me the relevance by RubberDogBone · · Score: 2

    If Yahoo wants to be relevant, they should show people like me how Yahoo matters. Right now, I can't think of any Yahoo products I use even once a year, and this is not new. It goes back years like this.

    Possibly the only thing I "use" at all is email through my ISP: they outsourced it to Yahoomail, but I don't actually USE it; I have GMAIL POP it for me and never actually touch the Yahoo interface -which is an ancient address I never actually use so it's not like I even care really. If GMAIL didn't let me handle it, that account would sit for years untouched. Irrelevant.

    Anyway, Yahoo, why should I care? How would my life be better if I used Yahoo stuff to do what I manage just fine without? I don't really see it. More importantly, I don't feel like I NEED Yahoo. And what Yahoo needs is people like me to feel like they MUST HAVE YAHOO, and that is exactly what I don't feel.

    Shrug

    --
    Sig for hire.
  17. Re:Is Yahoo! still a thing? by rogoshen1 · · Score: 3, Funny

    yawho?

  18. Re:But...but...but...she has a VAGINA!! by lgw · · Score: 2

    Unless the man in question is Putin or Chuck Norris there's little he could do for Yahoo!.

    Yahoo may pass the total value of the Russian stock market soon, if trends continue. Only Chuck can save Yahoo now.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  19. This reads like a hit piece by Magnus+Pym · · Score: 3, Insightful

    I would not call myself a fan of Meyer, and her use of her relationship with Page to screw over her contemporaries (read this book) has really left a bad taste in my mouth. However this article reads like a hit piece. It looks like some activist investors are trying to get her to do things she does not want to do (the article suggests returning the money back to shareholders and firing all the engineers). They are attacking her personally and that stinks.

    1. Re:This reads like a hit piece by kamapuaa · · Score: 3, Interesting

      That's like the first the paragraphs, you should read the rest of the article. It's interesting and informative.

      And is an interesting point that the stock market views yahoo as a negative three billion company with a thirty billion investment in Alibaba.

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
  20. Re:No, it isn't. by LostMyBeaver · · Score: 4, Funny

    Hmm... She's managed to gain the trust and support of enough people to get into the position she's in. She's managed to build one of the most prolific, wide spread news sources (though painfully littered with tabloid nonsense) on the Internet. She has also managed to get to the point which more traditional media channels are genuinely being replaced by her company.

    What she hasn't figured out how to do yet is to capitalize on all of it. There is a lot of potential... which is based on what she has done... but I for example had no idea there were Yahoo mobile apps before this article. Of course, I don't know why I would install one, but it means that a core component of their network isn't functioning (marketing) and needs to be fixed.

    So, you seem to think that everything she's done is based on her dick sucking skills. As such, I'm sure you've accomplished more than she has. After all, you wouldn't make such a comment unless you felt that her actual achievements in life were minimal compared to yours. So what have you done?

  21. Re:Chickens return, roost by LostMyBeaver · · Score: 2

    I would love to hear more about your point. There is merit to it... though it lacks a bit of depth in the writing.

    I think the big problem is that many of the more technical users of the internet simply wrote off Yahoo and even teased people for using it. As a result, Marissa would probably have been better off re-branding it. Somehow, it's hard to take Yahoo seriously. I think the biggest problem I have with it at this time is that for every serious news article written by a journalist who actually performs research, there is three Kardashion or Hilton type articles which makes them unreadable. This of course might be their desired effect in the long term, but it makes it really hard for people like Slashdot readers to say to someone "You should really use Yahoo!" since we wouldn't use it ourselves. In fact, we're more likely to distrust it and steer people away from it.

  22. Re: Is Yahoo! still a thing? by Anonymous Coward · · Score: 2, Funny

    And you are the Web, obviously.

  23. Announcing the Yune. by popo · · Score: 2

    Yes, Yahoo! has officially announced their music playing device called the "Yune".

    It's going to come in 7 different shades of purple, and offer an interface based on Yahoo!'s homepage design -- squeezing over 270 links onto the device's homescreen.

    Yahoo's CEO, Marissa Mayer apparently designed the Yune at home herself over the weekend using purple Play-Doh, and it will be officially unveiled by her in an upcoming Vogue photoshoot -- where she will be personally modeling the device along with this year's spring collection.

    Most of the underlying technology for the Yune was purchased from now-defunct Palm, Inc. in a purchase rumored to be north of $720 Billion -- approved entirely by Mayer. Mayer has refused to comment on the purchase price, but promised that the investment would yield positive results sometime after her salary review with the board of directors.

    The Yune will be in stores by next Christmas and as a special promotional offer to increase sales, the Yune is expected to come bundled with an iPhone.

    --
    ------ The best brain training is now totally free : )
  24. Re: Is Yahoo! still a thing? by thatkid_2002 · · Score: 2

    So the question people should be asking is *where* is yahoo still popular? Is it actually popular (and what services) in some countries/languages?
    Any insights?

  25. Re:That's not what happened at all by popo · · Score: 4, Informative

    Well... aside from the vitriol..

    We do know the following:

    1) She actually did fire all of the senior management and replace them with puppets.
    2) She did hire legions of publicists to promote Marissa.
    3) She did spend quite a bit on acquisitions which were questionable.
    4) It's not working out so well for Yahoo.

    So I'm not sure what citations you're looking for. It's not exactly hearsay.

    --
    ------ The best brain training is now totally free : )