2. Ya h o o

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

4. March 1995 -Larry Page & Sergey Brin (Stanford) August 1998 - First funding secured June 1999 - $25 mil round of equity funding March 2001 -(reluctantly) hire first CEO Eric Schmidt -CEO tenure 3/01-1/11 August 2004 -IPO ->19.6mil share @ $85 ($1.7b) -NASDAQ -> GOOG April 2011 - Larry Page becomes CEO (current ) Fun Fact: “Google” the result of googol being misspelled. (googol = 1 followed by 100 zeros) January 1994 -Jerry Yang and David Filo (Stanford) April 1995 -Two rounds of fundraising ~$3mil April 1996 -IPO ->2.6 mil share @ $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 1995-2001 T. Semel 2001-2007 J. Yang 2007-2009 C. Bartz 2009-2011 T. Morse 2011-2012 S. Thompson 2012 R. Levinsohn 2012 Marissa Mayer 2012-

5. 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 32.3 22.8% 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

6. -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

7. Talent Management Acquisitions

10. 163 Companies $28 Billion 15 Years

11. August 2005 $50 Million Mobile OS

12. March 2008 $3.1 Billion Online Advertising

13. October 2006 $1.65 Billion Stock Video Sharing

14. 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

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

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

21. 8 Yahoo CEOs in the past two decades Tim Koogle 1995-2001 Terry Semel 2001-2007 Jerry Yang 2007-2009 Carol Bartz 2009-2011 Tim Morse 2011-2012 (Interim) Scott Thompson 2012 Ross Levinsohn 2012 (Interim) Marissa Mayer 2012-Present

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

24. Marissa Mayer

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

26. Marissa’s leadership skills and influential effectiveness are questionable.

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

28. Lecturer hating to get feedback

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

30. 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

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

32. Lack of Trust Inexperience Arrogance Insecurity Poor Judgment

33. 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]

34. 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

37. -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 http://www.cenedella.com/why-does-yahoo-fail/

38. 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? http://www.cenedella.com/why-does-yahoo-fail/

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

40. 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.