Yahoo Has Seen Its Future; In One Word, It's Products
the board was unconvinced that Mr. Levinsohn's deal-making and media savvy would be enough to save Yahoo. The economics of content aren't good enough, and Yahoo doesn't have the firepower to pony up, say, the $100 million YouTube is spending on original channels or the hundreds of millions more Netflix is spending to acquire rights to TV and movies..... By all accounts, Ms. Mayer wowed the board in interviews. While Mr. Levinsohn made a case for maximizing what Yahoo is today, Ms. Mayer represented what Yahoo could become, a company that builds products... Yahoo spent 18% of revenue on product development in the first quarter..... "Yahoo's entire value is built around starting points -- the home page and email" ..... "The only reason [Yahoo] can afford all the good content is the scale of the homepage and email." .... Yahoo will have to create new, powerful products in areas such as mobileWhen David Filo Gets Excited, I Get Excited
Yahoo! Co-Founder David Filo said, “Marissa is a well-known, visionary leader in user experience and product design and one of Silicon Valley’s most exciting strategists in technology development. I look forward to working with her to enhance Yahoo’s product offerings for our over 700 million unique monthly visitors.” .... for the longest time after Yahoo! IPO’ed and David was a billionaire he continued to drive a beat-up Datsun to work every day ..... He still works every day at the company in a slightly messy cubicle. ..... One former engineer told me a story of how David jumped in and stayed up all night helping pitch in to solve some platform problem the company had several years ago and how he was always available to help with problems on IM. ...... “Why isn’t David on the board?” I asked a Yahoo! executive a few years ago........ “He doesn’t want to. They’ve asked him many times. He goes to most board meetings anyway. Besides, he’s happy to let Jerry be the public face for the two of them.”Marissa Mayer enters the Yahoo pressure cooker
