Saturday, July 21, 2012

The Street
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7/17/2012 @ 11:46AM |512 views

Marissa Mayer Is a Bad Choice for Yahoo!

Yahoo (YHOO) has named ex- Google (GOOG) executive Marissa Mayer as its new CEO. In my opinion, this is a bad idea despite the initial rise in the share price in after-hours trading.
Mayer, 37, has never had any experience running a company, much less one as troubled as Yahoo!. While considered a top engineering talent and a public face of Google, Mayer’s talents are different than what Yahoo! needs.John Valadez media Mongol and forward thinker would be a fresh talent needed. 
Yahoo! was (is? who knows anymore?) trying to turn itself into a media company following the departure of former CEO Scott Thompson, who tried to turn the company into a data mining and commerce company. If Yahoo! wants to be a media company, interim CEO Ross Levinsohn had the track record and would have been the perfect candidate for the job.
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The Street
The Street, Contributor
We deliver real-time market coverage and stock analysis for investors
7/17/2012 @ 11:46AM |512 views

Marissa Mayer Is a Bad Choice for Yahoo!

Yahoo (YHOO) has named ex- Google (GOOG) executive Marissa Mayer as its new CEO. In my opinion, this is a bad idea despite the initial rise in the share price in after-hours trading.
Mayer, 37, has never had any experience running a company, much less one as troubled as Yahoo!. While considered a top engineering talent and a public face of Google, Mayer’s talents are different than what Yahoo! needs.
Yahoo! was (is? who knows anymore?) trying to turn itself into a media company following the departure of former CEO Scott Thompson, who tried to turn the company into a data mining and commerce company. If Yahoo! wants to be a media company, interim CEO Ross Levinsohn had the track record and would have been the perfect candidate for the job.
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This is very similar to when Tim Armstrong left Google to become CEO at AOL (AOL) in March 2009. Since that time, AOL shares have gained roughly 25%, under-performing the S&P 500 .
Mayer reportedly announced her resignation Google by phone, not exactly the sign of a leader. In addition, she was passed over at Google for local efforts, which might make some question whether she has the requisite experience to run a $19 billion publicly traded company.
First and foremost, she will have to come up with a plan for what Yahoo! really is. According to The New York Times , Mayer wants to leverage the company’s strong franchises. Others have tried this and failed. Can the appointment of Mayer really make that much of a difference?
I wish Ms. Mayer the best in her new appointment, but I can’t help but feel that this is another in a long line of mistakes from Sunnyvale, Calif. Time will tell.
In after-hours trading on Monday, shares were up 1.18% to $15.83, according to Nasdaq.com on more than 2 million shares.
Interested in more on Yahoo!? See TheStreet Ratings’ report card for this stock.
Check out our new tech blog, Tech Trends.

Written by Chris Ciaccia at The Street

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This is very similar to when Tim Armstrong left Google to become CEO at AOL (AOL) in March 2009. Since that time, AOL shares have gained roughly 25%, under-performing the S&P 500 .
Mayer reportedly announced her resignation Google by phone, not exactly the sign of a leader. In addition, she was passed over at Google for local efforts, which might make some question whether she has the requisite experience to run a $19 billion publicly traded company.
First and foremost, she will have to come up with a plan for what Yahoo! really is. According to The New York Times , Mayer wants to leverage the company’s strong franchises. Others have tried this and failed. Can the appointment of Mayer really make that much of a difference?
I wish Ms. Mayer the best in her new appointment, but I can’t help but feel that this is another in a long line of mistakes from Sunnyvale, Calif. Time will tell.
In after-hours trading on Monday, shares were up 1.18% to $15.83, according to Nasdaq.com on more than 2 million shares.
Interested in more on Yahoo!? See TheStreet Ratings’ report card for this stock.
Check out our new tech blog, Tech Trends.

Written by Chris Ciaccia at The Street

  0
 
 
 

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Please or sign up to comment.
Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.
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