Yahoo reorganization planned

Source: Exec Digital USA

Date :20/06/2008 04:33:44

Internet giant Yahoo, which sensationally rejected a takeover from Microsoft, is reported to be considering reorganization.

A number of senior Yahoo Inc executives are leaving the Web company as it looks to improve earnings and convince investors it is worth at least as much as a bid it rejected from Microsoft Corp.

People familiar with the matter, according to reports, say that President Sue Decker is also considering a reorganization that would centralize Yahoo mail, search and homepage divisions into a global product organization.

Yahoo hasn’t yet commented on the reports, and it is so far unclear whether the reorganization was in response to the executive moves or the other way around.

Defections

Three executives are leaving; one of the names bouncing around is that of Brad Garlinghouse, known for the infamous 2006 "Peanut Butter Manifesto" memo which called for a radical overhaul of the company.

Vish Makhijani, general manager of Yahoo's Web search business, and Qi Lu, the top engineer for Yahoo's Panama search marketing platform, are also reported to be leaving the company.

This news comes after Yahoo announced at the beginning of the week that Jeff Weiner, recently executive vice president of the network division, had left to work at venture capital firms.

Rejecting Microsoft

Yahoo sensationally turned down a US$47.5billion takeover offer from Microsoft, and then a follow-up alternative deal with the software maker, in favor of an agreement for Google Inc to sell search ads on its site.

It is now locked in a proxy battle with billionaire investor Carl Icahn, who launched a campaign in May to replace the company's board after the failure of Microsoft's bid.