“Some people leave, some get promoted and some good people arrive.”

Yes, indeedy, and this afternoon, it was David Katz’s turn to say goodbye. He was Yahoo’s VP for Mobile, North America. (He is pictured here, and you can read his bio here.)

The move, said sources, is part of a reorganization in the wake of the departure of David Ko, SVP Audience of Mobile and Local, North America.

He was replaced by Raymond Stern, who also heads business development.

If it seems a little confusing, it is because it is.

But there are all kinds of management rejiggering discussions going on after the additional departures of U.S. head Hilary Schneider and Media VP Jimmy Pitaro.

Mobile is an important arena for Yahoo, as Bartz also stressed in the call today.

Let’s hope Dave lands somewhere good, as he seems so nice from this recent video from the CTIA conference just two weeks ago, posted by Yahoo:

David Ko (pictured here), who just announced he was leaving Yahoo as head of its powerful U.S. Audience unit, is taking a job heading mobile efforts at hot social gaming start-up Zynga, according to sources.

The move comes only a day after Jimmy Pitaro, who also departed his job as SVP of Media at the Internet giant last week (working under Ko, in fact), landed at Disney (DIS) as the new co-president of its Internet division.

For Zynga–the fast-growing San Francisco-based maker of such online hits as Farmville and Mafia Wars that got its start on Facebook–mobile is becoming a critical new platform for growth, as consumers use a variety of increasingly functional mobile devices, such as smartphones and tablet computers.

It’s also the fastest growing area internationally, where mobile phones are more widespread and where Zynga is seeking its next spurt of growth.

Sources said Zynga had been pursuing Ko for months.

Before heading the Audience unit at Yahoo (YHOO), Ko ran its mobile operations, which included heading product development, making distribution deals and more.

Under Ko, Yahoo’s mobile efforts first centered on building apps for smartphones, such as the Apple (AAPL) iPhone, but shifted to encompass more of its copious content assets.

Ko, who worked in a variety of areas at Yahoo, took over as SVP of Yahoo Mobile in 2009 after Marco Boerries left as EVP of the Connected Device Division, which now does not exist under that name.

Ko had also run Yahoo’s mobile business in the Asia-Pacific region.

According to one of Ko’s old Yahoo bios, he previously worked at Salomon Smith Barney as a senior associate and analyst. He is a graduate of New York University’s Stern School of Business.

Ko, who lives in San Francisco with his family, the bio notes, inexplicably “enjoys reading tech blogs.”

In his new job, as SVP of Mobile at Zynga, he will report directly to CEO Mark Pincus, sources said.

Sorry, folks, but–despite reports–Yahoo will not be unveiling another new organizational structure this week.

In actuality, the beleaguered Internet giant is just cleaning up from last week’s shake-up–in which it announced that a chunk of its top media and sales leadership was leaving–as well as settling in new hires made in recent months by its relatively new product head, Blake Irving.

In fact, those changes in Irving’s unit have resulted in the departure of two more execs. That would be former SVP of Media Products and Solutions Jeff Kinder and SVP for Cloud Computing Shelton Shugar, who are on their way out.

Kinder actually left his job many weeks ago and was offered the chance to find another within Yahoo (YHOO), although sources said he has now definitely decided to leave the company on his own.

CEO Carol Bartz held a meeting Friday with senior leadership to go over the situation and to assure management that changes to come would stabilize the company going forward.

To be sure, Yahoo needs some kind of reassurance and fast.

BoomTown broke the news last week that U.S. head Hilary Schneider was departing the company (see her goodbye memo below), along with U.S. Audience head David Ko and SVP of Media Jimmy Pitaro.

Pitaro has since landed a big job as co-president of the Internet unit of Disney (DIS).

The overall corporate turmoil has put more scrutiny on Bartz. For two years, she has been trying to turn around the company, with only a modicum of success.

While Bartz did strike a search and online advertising partnership with Microsoft (MSFT) to better battle Google (GOOG), she has not goosed flat revenue nor been able to boost Yahoo’s moribund stock.

Perhaps more critically, she has not stopped the steady exodus of talent, especially of more senior execs.

Departures in the last six months include U.S. advertising sales head Joanne Bradford, Integrated Consumer Experiences SVP Tapan Bhat, CTO Ari Balogh, as well as the heads of its social platform and communications product units.

But last week’s departure trifecta of the execs running Yahoo’s powerful and successful media unit drove the talent drain issue home for many investors and other observers.

While each departure case was different, of course, the leavings have lent a feeling of instability inside and outside the company.

That has happened more quietly over the several months of reshuffling by Irving (pictured here), who came to Yahoo from Microsoft, and which I have reported on here previously several times.

For example, in September, Irving hired Microsoft exec John Matheny to head the communications products and communities unit.

Previous to that, in July, Irving brought in another old colleague from the software giant–Bill Shaughnessy–as SVP of Product Management.

Thus, Irving–who is a little too busy traveling to a number of Yahoo product and technology units in Asia and India over the next weeks to announce yet another reorg–has pretty much already moved his part of the business around, although there are likely to be some more hires to come.

It is not unusual for a new senior exec to do this, of course, but Irving’s many moves reportedly sparked some tension between him and Schneider.

That might have been moot, since she had decided to leave some months ago, but was asked to stay on by Bartz.

To be sure, in recent months, many sources said that their relationship had become strained too as Yahoo ad sales continue to struggle, and they also disagreed on the company’s strategic direction.

Still, it should be noted that Schneider is staying on until a new exec is named to replace her.

Whatever the various machinations in the corporate suite at Yahoo, Bartz needs to find a way to convince Wall Street that she still has the ability to complete her much touted turnaround of the Silicon Valley pioneer to a new period of growth and innovation.

How quickly she is doing that will come into sharp relief in a few weeks when Yahoo reports its third-quarter earnings on October 19.

And while executive departures garner a lot of attention, that is the bottom line for Yahoo, the thing most important of all to watch.

Finally, given I love a good internal memo, here is, belatedly, the email that Schneider sent to her staff last week about her leaving:

Team,

I’m sure by now you’ve all had a chance to read Carol’s note, and know that I made the decision to move on to the next stage of my career. When I joined Yahoo! four years ago, I knew it would be an amazing and rich experience…and it has exceeded every expectation. Our consumers look to Yahoo! as they navigate their lives, our advertisers look to Yahoo! for leadership, and publisher looks to Yahoo! for our amazing scale and reach. Our team, however, is our secret weapon!

Meanwhile, the search for my successor is under way and I will continue to lead our team until we make the transition.

Additionally. David Ko, SVP of Audience and Mobile, and Jimmy Pitaro, VP of North America Media, have decided to leave Yahoo! David and Jimmy are amazing leaders and we will miss them. Yahoo!’s leadership positions in Sports, News, Entertainment, Finance and Mobile are their legacy that we have to proudly continue.

Raymond Stern will be the SVP of North America Audience and will be responsible for the Audience teams. Raymond has been an integral part of Americas leadership team as the SVP of Business Development and Partnerships. Before joining Yahoo! a year ago, he held a wide range of business leadership positions, including more than 10 years as a Partner the Boston Consulting Group where he ran the Technology and Media Practice on the west coast. He also held senior leadership roles at Intuit, including CMO.

Raymond will immediately start diving in to the Audience business, and David and Jimmy are committed to working with Raymond through the transition. Right now, Raymond will continue overseeing the business development and partnership teams while we think through the best structure for these teams moving forward.

I know that transitions can create swirl–but our customers, both consumer and marketers, are looking to us for continued leadership…and I know we can deliver this.

You are Yahoo!’s magic, and I thank you for your tremendous commitment, leadership, and support.

Hilary

Finally, a funny from Yahoo CEO Carol Bartz, confirming what BoomTown reported yesterday about the departures of three top execs in an email memo to the company’s employees worldwide.

It just went out and began: “Carol from the foxhole here.”

Actually, she’s in Georgia. In the memo, Bartz said she expects to announce the new head of the Americas region for Yahoo (YHOO) to replace outgoing chief Hilary Schneider before the end of the year.

The company also released a similar statement, which is below, adding that Raymond Stern, Yahoo SVP of North America partnerships and business development, will take over for another outgoing exec, Audience head David Ko.

(Yahoo VP of Media Jimmy Pitaro was the third in the sweep of execs.)

And you can see Yahoo’s just-filed 8-K here on Schneider, because a departure of such a top exec requires regulatory notification. It is also embedded below.

(By the way, they are not rumors if they are true. Don’t drop-kick me to f***ing Mars for saying so, Carol!)

Here’s the full memo from the All Things Digital Bartz-fortified bunker, just in case, signing out:

Yahoos,

Carol from the foxhole here. No, actually I’m in Atlanta to give a speech later tonight, and doing some client meetings.

But I’m sure you’ve seen the rumors about Hilary Schneider, David Ko, and Jimmy Pitaro leaving. Yes, they’re leaving, but each for different reasons that suit their life–and Hilary will send a separate note to her team with more about the Americas org. later today.

After nearly four years with Yahoo!, Hilary has decided to move on to the next phase in her career. Hilary has played a major role at Yahoo! in driving our strategies for content, online advertising and more. I want to thank her for her contributions over the years, and wish her the best as she moves on.

We expect to announce the new head of the Americas region before the end of the year. There is a lot of interest in joining our team for such a key position and, in the meantime, Hilary will stay on to help with the transition.

Now, you all know we’ve been intensely focused on improving our operations and top line growth. And we’ve seen good progress. But there’s a lot more to do, and as we transition to a new leader for the Americas we’re taking this opportunity to double down on these efforts. Hilary’s successor will clearly be maniacally focused on growing our top line in the region.

So everyone stay calm–we have a good plan in place. In fact, I’m more fired up than ever and can roll with the punches. Yahoo! is a great place.

Carol

And here is the official statement from Yahoo:

Yahoo! today announced the departures of Hilary Schneider, Yahoo!’s EVP Americas Region; David Ko, SVP Audience, Mobile and Local, North America; and Jimmy Pitaro, Vice President of Media. Yahoo! continues to be committed to delivering the best digital experiences to consumers, leadership to advertisers and amazing scale and reach to partners.

Hilary Schneider has played a major role at Yahoo! in driving the company’s strategies for content, online advertising and more. David Ko and Jimmy Pitaro have both made countless contributions to Yahoo! and have helped transform the company’s mobile and content strategies in a constantly evolving business environment. We wish them all the best in their future endeavors.

Raymond Stern will assume responsibility for David Ko’s teams and duties. The company is seeking a new head of the Americas region and expects to make that announcement before the end of the year. Schneider will stay on to help with the transition.

And here is the 8-K:

Current Report on Form 8-K.html –

“We are wandering around and people are asking us questions and we don’t know what’s going on ourselves,” said one very nervous Yahoo ad salesperson this morning, in New York for Advertising Week, the most important gathering of the year for online sales. “There’s a lot of uncertainty from an employee perspective.”

You can say that again.

Today, as news BoomTown broke about the departure of Yahoo’s U.S. head Hilary Schneider and two other key execs at the Internet giant spread, I have been on the receiving end of a spate of emails and calls and text messages from staffers at the Silicon Valley icon searching for information about what’s up at their own company.

That’s because neither the top management of Yahoo (YHOO) nor its typically ineffectual board has communicated to its thousands of employees about exactly what is going on, nor about plans to replace bosses in charge of giant swaths of the business.

Now, for example, Yahoo’s ad sales execs say they don’t know who to report to, since Schneider is headed out and no one person replaced U.S. ad sales leader Joanne Bradford in Yahoo’s key moneymaking market after she left in March.

And media workers, such as GMs of powerful Yahoo news, sports, finance and mobile efforts, all under departing Audience head David Ko and VP of Media Jimmy Pitaro, are also wondering who is now in charge.

Here’s my promise: I will have all internal memos here, as soon as they are released and I can get my mitts on them.

It’s not clear when that will be. Sources said Yahoo might make a statement about the situation this afternoon, before the planned announcement tomorrow afternoon about the exec departures, but it has not been determined yet.

But sources said Yahoo might have an exec to announce to replace at least Schneider by today, given how important sales are to the company.

Since Chief Product Officer Blake Irving is from Microsoft and he has brought in several execs from there to Yahoo, rumors are swirling around yet another one coming in.

Some outside partners are also nervous, including those staying at Microsoft.

In an interview just this morning with the new head of global ad sales for Microsoft (MSFT) Carolyn Everson, for example, she pointed out that Yahoo is slated to take over premium online ad sales for the software giant under the terms of their search and technology partnership in just two weeks.

“I’ll be honest,” she said. “We are a little worried.” But she added that Yahoo remains an important strategic partner and the success of the alliance is a key focus.

Worried? Get in line, it seems.

Here’s how Yahoo’s top brass and board–with the help of its newly re-engaged crisis-management PR firm, Abernathy MacGregor–are already trying to spin the latest executive turmoil to hit the company:

Trashing those on the way out, to take focus off those remaining who have been just as responsible for driving the Internet icon and claiming that this is all part of yet another well-planned reorganization at Yahoo (YHOO).

Don’t believe most of it for a second. Some of it is corporate politics as usual, some of it rejiggering of events, some just not true at all.

After BoomTown’s scoop earlier today that Yahoo’s U.S. head Hilary Schneider, as well as Audience head David Ko and VP of Media Jimmy Pitaro, would be departing the company–all of which Yahoo is still planning to announce after the markets close on Friday–here comes this gem in a follow-up story in The Wall Street Journal:

“[Yahoo CEO Carol] Bartz, who joined Yahoo in January 2009, is in the midst of a turnaround effort. People familiar with the matter said she is removing the company’s old guard to assemble a new team.”

Let’s parse this ridonkulous spin-addled blame game, shall we?

Bartz is, in fact, the very person who picked all those execs for prime responsibility in her last reorg.

If they were so incompetent, why not dump them much quicker? After all, it’s not like the problems have not been mounting for months and months, with more and more talent taking off.

In addition, the exec exodus at Yahoo over the last year has been unrelenting and broad, encompassing way too many employees for her to act as if it were all planned and okay.

As to the “midst of a turnaround effort” canard that Bartz keeps insisting on, even comparing herself to Apple (AAPL) CEO Steve Job’s epic journey to return that legendary company to health?

Um, we are deep in the second year of the Bartz regime, and there appears to be no iPod-like save in sight, and it’s a little long in the tooth to keep using the turnaround excuse for all that has not yet happened under her command.

Which is to say, stock with a pulse and real growth across all metrics, as Facebook and Google (GOOG), to name a few, are showing.

In addition, it was Bartz herself who handed over a lot of the responsibility for the revival of Yahoo to Schneider.

Which meant Schneider had to be thrown under the wheels of the bus in the Journal by dragging out a very old–and tangential to the much larger flat revenue crisis at Yahoo–newspaper deal as pretty wet cannon fodder:

“Ms. Schneider is leaving because officials haven’t been satisfied with her performance, according to people familiar with the matter. Ms. Schneider was responsible for a 2006 deal with industry group Newspaper Consortium, in which Yahoo sold ads for newspaper websites and print editions. The effort continues but has not met Yahoo’s expectations, according to a person close to the company.”

Memo to readers: “People familiar with the matter,” I am guessing, would be current Yahoo execs.

The fact of the matter is that there have been both critics and admirers of Schneider at Yahoo, which comes as no surprise for one of its top execs. Some consider her smart and canny, while others complain of indecisiveness and slowness to act.

And, she has definitely had some very big whiffs, including the newspaper consortium, but most especially not finding an ad sales chief to replace Joanne Bradford, who left in March, about which I gave her a hard time when a very squishy structure was announced.

And, right now, sources tell me, Yahoo’s upcoming quarterly report could be an even tougher one.

And that falls to Schneider, of course, who has been in charge of its many partnerships, as well as advertising sales across the key Americas region.

Perhaps good reason for an ouster, except I have been tracking Schneider’s status for many months now, since hearing from many sources–not her, ever, in case you wanted to know–that she had told Bartz she wanted out.

Maybe that is what began to sour the boss on Schneider. But to now suddenly call her performance poor seems unusual, especially when you can just as easily point to Yahoo’s disastrous and pricey marketing campaigns–it is definitely not You!–helmed by CMO Elisa Steele, which has failed to move the needle on key user metrics.

But she has a tight relationship with Bartz, so she’s all right, jack? I am dizzy from all the spinning.

In other words, execs make mistakes and there is a lot of blame to go around and–as the old saying goes–the buck really does stop with Bartz.

But, guess what? Perhaps it should be noted that Bartz has also misstepped badly of late by making a series of wild remarks that have seriously angered many partners and other companies in Silicon Valley.

And I have heard from countless and very significant investors, all of whom are deeply concerned about her tone and recent public comments.

Just ask Yahoo Japan’s Masayoshi Son. Or Alibaba’s Jack Ma in China. Or the fine folks over at Apple in Cupertino, Calif.

And, I can also report that several execs at Yahoo’s new search technology partner, Microsoft, are also increasingly alarmed. Said one to me yesterday: “It is becoming a little unsettling.”

I can say for certain that Ko, who will doubtlessly be the next to get dinged, left on his own motor, telling Bartz himself recently.

He was quickly followed by Pitaro, who, as I reported earlier this week, is headed to another big company. No matter what the spin, his departure is a big loss, as he is well-liked inside and outside the company.

Then Schneider rounded out the latest trio of execs to go.

Thus, sources said, Yahoo is about to go on the offense, which is the expected thing to do, ready to announce a plan to move most of the product organization under Chief Product Officer Blake Irving.

The former Microsoft (MSFT) online exec is as sharp as a tack, in my experience, and clearly an even sharper corporate player, recently bringing in a series of his old cohorts from the software giant to take over big jobs at Yahoo.

He’s obviously now won some version of a corporate power play, and is now in favor with Bartz. But that means he’s being handed the entire thing.

Apparently, Irving has told numerous people that he plans to “rip it all down” and streamline the whole organization.

More rearranging at the company that has moved around the corporate living room umpteenth times over the past several years? Except it is still essentially the same room and same house.

Okay, Irving should probably have his choice of where the sofa goes, but as one exec wisely told me tonight: “Yahoo needs to build great products, not have another reorg….It needs a win.”

Indeed, just as board member Eric Hippeau apparently said at a recent meeting to deal with the latest executive kerfuffle.

Yahoo Chairman Roy Bostock–who has presided over so many stumbles over the years that I have lost count–said to the room: “We need crisis management.”

Countered Hippeau, a longtime Internet exec who is now CEO of the Huffington Post: “What we need is revenue.”

Indeed. And innovation. And a vision. And, most of all, spin-free leadership.

The executive turmoil at the very top of Yahoo continues, with the company poised to announce the resignations of three top execs, including U.S. head Hilary Schneider (pictured here), according to sources close to the situation.

The other execs also leaving, which Yahoo (YHOO) is planning on revealing Friday: U.S. Audience head David Ko and, as BoomTown previously reported, VP of Media Jimmy Pitaro.

While some at Yahoo are trying to spin it as an ouster, sources close to the situation said that Schneider–who presides over media and advertising sales at Yahoo–has wanted to leave the company for a while, but was convinced to stay on by CEO Carol Bartz.

Schneider will, in fact, stay at Yahoo while it searches for her replacement. Heidrick & Struggles had already been headhunting candidates for her job in recent weeks.

Why Ko, who works directly for Schneider, is leaving now is uncertain, although sources said a lot of product control over properties under him is being moved over to Chief Product Officer Blake Irving.

Irving was hired several months ago by Bartz, and he has brought in many former colleagues from Microsoft (MSFT) to top product jobs at the company. And he’s appeared to have won the latest corporate power play too.

This entire mess–and that’s precisely what it is–calls into question the tenure of Bartz, a tough-talking, cost-cutting exec who was brought in to clean up Yahoo after the maelstrom around the failed takeover attempt by Microsoft several years ago.

She replaced co-founder Jerry Yang and came in with guns blazing and styling herself as an agent of change.

Except not too much as changed–except for finally striking a search technology deal with Microsoft–as the exodus of talent from Yahoo increases, advertising revenue growth is anemic, innovation is stalled, metrics are weak and the stock remains moribund.

In addition, Bartz’s frequent shoot-from-the-hip remarks appear to have alienated a number of partners, most recently in Asia.

This week, according to sources, some board members had an emergency meeting at Yahoo’s Sunnyvale, Calif., HQ to try to figure out how to deal with the burgeoning management issue.

Some speculate that they will hire a second-in-command to Bartz, who might be able to take over for her when her contract is up in 18 months.

Yahoo declined to comment.

Last week at a Goldman Sachs (GS) investment conference, voluble Yahoo CEO Carol Bartz tried to minimize the impact of the recent spate of significant executive departures at the Internet giant.

But, she noted: “There are a few more we’re going to lose.”

And Bartz is right–according to several sources with knowledge of the situation, Yahoo’s well-liked VP of Media, Jimmy Pitaro (pictured here), is expected to be leaving the company soon.

Rumors around Pitaro’s departure have been swirling inside and outside Yahoo, especially this week. Bartz and other execs are still trying hard to keep Pitaro, but sources said his departure would likely be to another company.

If he goes, it will certainly be a loss for Yahoo (YHOO). Pitaro is a longtime veteran and experienced digital-media exec, and he has run a number of its key media properties, such as Sports.

He now presides over all its other powerful media properties, such as News and Finance. Pitaro reports to David Ko, Yahoo’s U.S. Audience head.

Pitaro follows a number of key Yahoo execs out the door recently, either via changes in structure or because of increasing dissatisfaction with management and the company’s moribund stock price.

Adding Pitaro to the pile will only increase pressure on Bartz, as well as U.S. SVP Hilary Schneider, to show investors that the Silicon Valley icon has a clear and innovative plan amidst the executive turmoil.

Yahoo declined to comment.

Here is a recent video interview BoomTown did with Pitaro at Yahoo’s Santa Monica, Calif., offices, about a blog called The Upshot, an effort to delve deeper into the new push to determine content selections based on search:

]]> http://allthingsd.com/20100928/exclusive-yahoo-exec-churn-continues-with-media-head-pitaro-ready-to-bolt/feed/ 4 http://allthingsd.com/20100518/yahoo-snaps-up-associated-content-for-90-million-to-counter-aol-and-demand-media/ http://allthingsd.com/20100518/yahoo-snaps-up-associated-content-for-90-million-to-counter-aol-and-demand-media/#comments Tue, 18 May 2010 20:00:56 +0000 Kara Swisher http://kara.allthingsd.com/?p=28517

Yahoo, in a clear attempt to get deep into the social content space and better compete with both AOL and Demand Media, announced the acquisition of Associated Content.

Sources close to the situation said the price was $90 million in cash, which is a solid outcome for Associated Content, a start-up that found itself in an increasingly crowded space for cheaper content.

There are no earn-outs and no restrictions, sources added.

Yahoo (YHOO) declined to provide the financial terms of the deal and said it expected to complete this acquisition in the third quarter of 2010.

In the deal, which the pair have been talking about for some time, the code name for the New York- and Denver-based company was Atlantic.

And, indeed, Yahoo is aiming to garner a massive sea of content by buying the company, which said it has 380,000 contributors and many millions of pieces of content.

It has about 16 million unique monthly visitors, according to recent surveys, and has signed several distribution deals with major media partners.

“This is really about our commitment to providing high-quality content that is relevant to users and also advertisers,” said David Ko, who heads Yahoo’s media efforts, in an interview with BoomTown just before the deal was announced.

For Associated, said founder Luke Beatty, it was a need to get access to Yahoo’s huge pool of consumers for its content, provided by armies of freelancers. It was founded in 2004, he noted, with the tagline: “The People’s Media Company.”

“We invented the category, thinking about this idea that there should be a democratization of content,” he said. “Being part of Yahoo increases our scale to a completely different level.”

Ko said Associated Content was “far superior than any competitor.”

It was a sentiment countered by Demand CEO and co-founder Richard Rosenblatt:

“The fact that Yahoo–which has historically sourced content from storied brands like Reuters, Associated Press and entertainment deals with Hollywood–is now ready to bring user-generated content to its advertisers is fascinating,” he wrote in an email to me. “Demand Media’s approach is certainly different than either AC, Yahoo or the combination. We think that our approach is differentiated due to our large professional content creator network, rigorous editorial processes, strong technologies and algorithms and distribution on a combination of owned and partner sites.”

Yahoo’s Ko also called Associated Content a “pioneer” in the space to make bank from crowd-sourced, search-optimized content efforts for media about more mundane topics like back pain.

And, indeed, that is true.

Yet Associated Content’s efforts have been overshadowed recently by those of Santa Monica, Calif.-based Demand Media, which is heading for an IPO at a multibillion-dollar valuation, as well as AOL (AOL), which has put a lot of muscle behind both its low-cost social content at its Seed unit and higher-priced premium content efforts.

As MediaMemo’s Peter Kafka wrote:

“Associated Content looks and acts a lot like Demand Media, the Santa Monica-based “content mill” that’s drawn a lot of attention in the last year or so–though both companies bristle when you compare the two. It’s also thematically related to AOL CEO Tim Armstrong’s push to automate the production of content at that company.”

And while Beatty had said Associated Content was not for sale, many other sources inside and outside the company said it has been shopping itself for a while now, including to both Demand and AOL, in fact.

It hired Allen & Co. earlier this year, after AOL talks went nowhere.

Ironically, Armstrong was an angel investor in Associated Content, which is also backed by Canaan Partners and SoftBank Capital. It had raised a total of $21.4 million.

Another irony: In the past, Yahoo has taken a look at acquisitions of both AOL and Demand, deeming both too pricey.

In addition, the relationship between Demand and Yahoo has gotten testy of late, with Demand poaching top exec talent from Yahoo, such as U.S. ad sales head Joanne Bradford, among others.

People close to Associated Content say it’s on a $15 million run rate, up from $4 million earlier in the year.

Still, settling in at Yahoo and for a solid price is a good outcome for Associated, whose staff will now be integrated with the Silicon Valley Internet giant.

“Combining our world-class editorial team with Associated Content’s makes this a game-changer,” said Yahoo CEO Carol Bartz in a statement. “Together, we’ll create more content around what we know our users care about, and open up new and creative avenues for advertisers to engage with consumers across our network. These are important aspects of building engaging consumer experiences on Yahoo!, and one of the reasons why we’re one of the most visited destinations online.”

Here is a video that Yahoo posted on its Yodel Anecdotal blog of Beatty (good lord, you really don’t need to kiss up to your new bosses with purple socks, Luke!):

@ Yahoo! Video

And here is the official press release from Yahoo about the deal:

Yahoo! to Acquire Associated Content

Extending leadership in content with the addition of 380,000 contributors

Sunnyvale, Calif.–May 18, 2010–Yahoo! Inc. (NASDAQ: YHOO) today announced it has signed a definitive agreement to acquire Associated Content Inc. This strategic move extends Yahoo’s ability to provide high quality, personally relevant content for the benefit of more than 600 million users as well as tens of thousands of advertisers. As Yahoo! enhances its social, mobile, local, and media offerings, the acquisition of Associated Content reinforces the company’s longstanding promise to offer the best of the Web–by combining Associated Content’s approximately 380,000 contributors who provide rich and varied content on a broad array of passion points, with Yahoo’s leadership in partnering with established content brands and the award-winning team of editors and experts from Yahoo!.

“Combining our world-class editorial team with Associated Content’s makes this a game-changer,” said Carol Bartz, CEO, Yahoo! Inc. “Together, we’ll create more content around what we know our users care about, and open up new and creative avenues for advertisers to engage with consumers across our network. These are important aspects of building engaging consumer experiences on Yahoo!, and one of the reasons why we’re one of the most visited destinations online.”

“The Associated Content team and our 380,000 contributors are looking forward to joining Yahoo! and to the opportunities that being part of a global Internet brand presents,” said Luke Beatty, Associated Content founder and president. “Combining our crowd sourced content with Yahoo!’s distribution, world class editorial team and online marketing leadership will accelerate our growth as we continue to leverage our best-of-breed platform to deliver high quality compelling content on more than 60,000 topics.”

For advertisers, this deal will expand Yahoo! into more topic areas and real-time content generation. The combination promises to offer advertisers even more opportunities to engage groups of passionate consumers in ways they will find uniquely appealing to their interests and tastes. Having insight into user intent through its leading search products enables Yahoo! to identify topics important to advertisers and users. Yahoo! plans to use Associated Content to create content around those topics and leverage Associated Content to contribute content to existing media properties. Associated Content also provides more opportunities for Yahoo! to partner and collaborate with publishers who can help the company shape the tremendous variety of content coming in, into something bespoke and even more engaging.

While current Associated Content content is U.S.-centric, Yahoo! expects to scale the platform globally.

Associated Content was founded by Luke Beatty in Denver, Colorado, in 2004. Associated Content receives more than 16 million unique users per month (comScore) and the editorial staff reviews more than 50,000 pieces of content per month, including articles, images, audio and video.

Yahoo! expects to complete this acquisition in the third quarter of 2010. Financial terms were not disclosed.

]]> http://allthingsd.com/20100518/yahoo-snaps-up-associated-content-for-90-million-to-counter-aol-and-demand-media/feed/ 7 http://allthingsd.com/20091130/yahoo-mobile-head-david-ko-takes-over-audience-job-too-but-mobile-product-development-moves-under-balogh/ http://allthingsd.com/20091130/yahoo-mobile-head-david-ko-takes-over-audience-job-too-but-mobile-product-development-moves-under-balogh/#comments Mon, 30 Nov 2009 08:13:41 +0000 Kara Swisher http://kara.allthingsd.com/?p=21154

David Ko (pictured here), head of Yahoo’s mobile division, has added the Internet giant’s vast media properties in the U.S. to his portfolio, according to several sources.

BoomTown recently reported that Ko was the likely person to take over as North American Audience head at Yahoo (YHOO), reporting to U.S. EVP Hilary Schneider.

With purview over programming and more for the main Yahoo media properties, such as News and Finance, he fills a slot left by the departure of Jeff Dossett in May.

Since then, the key Yahoo content division has been run jointly by Jimmy Pitaro, who heads Vertical Audience Experiences for Yahoo, and Tim Mayer, who is in charge of Search & Social Applications, as well as the powerful homepage of Yahoo. Both now report to Ko, who joined Yahoo in 2000, sources said.

But, in a related move, product development for mobile has moved from under Ko to CTO and EVP of Products Ari Balogh.

A similar move of Yahoo’s media properties took place earlier this year, shifting key tech development responsibility to a global product organization at Yahoo’s HQ in Sunnyvale, Calif.

Previously, as had been the case in mobile, such development had been mostly carried out by individual media properties.

The argument for the shift posits that centralizing product development of Yahoo offerings drives efficiencies, saves money, eliminates redundancies and accelerates growth around the world.

Those who do not like the idea think it is wrong to separate the development of a product from programming because the two are intricately dependent and need to be tweaked delicately.

But, said one source, mobile has been deemed by CEO Carol Bartz as “part of the core” at Yahoo instead of more an experimental offering as it has been viewed internally.

Thus, mobile apparently needs to be closely aligned to all product development going forward.

Ironically, one of Yahoo’s more high-profile mobile efforts, its Yahoo Go mobile software application and portal, which was launched to much fanfare at the Consumer Electronics Show in Las Vegas almost four years ago, will be shuttered Jan. 12, 2010.

Now, under Ko, Yahoo’s mobile efforts have been centered around building apps for smartphones, although that market has become increasingly dominated by players such as Apple (AAPL) with its iPhone, Google (GOOG) and its Android effort and many others.

Google also just bought an innovative mobile advertising company, AdMob, which gives it a headstart in this nascent arena.

Without its own device and a dominating strategy, Yahoo must use its Web heft to push its content into the mobile space.

Presumably, that is the thinking behind giving Yahoo’s mobile and media properties the same boss.

Ko, who has worked in a variety of areas at Yahoo, took over as SVP of Yahoo Mobile after Marco Boerries left in late February as EVP of the Connected Device Division, which now does not exist under that name.

He had run Yahoo’s mobile business in the Asia Pacific region.

According to Ko’s Yahoo bio, he previously worked at Salomon Smith Barney as a senior associate and analyst. He is a graduate of New York University’s Stern School of Business.

Ko, who lives in San Francisco with his family, the bio notes, inexplicably “enjoys reading tech blogs.”

Well, then, Dave, we hope you have enjoyed this post!

]]> http://allthingsd.com/20091130/yahoo-mobile-head-david-ko-takes-over-audience-job-too-but-mobile-product-development-moves-under-balogh/feed/ 2 http://allthingsd.com/20091118/yahoos-bartz-shuffles-the-exec-deck-filling-audience-and-other-top-slots-is-the-board-next-for-a-makeover/ http://allthingsd.com/20091118/yahoos-bartz-shuffles-the-exec-deck-filling-audience-and-other-top-slots-is-the-board-next-for-a-makeover/#comments Wed, 18 Nov 2009 22:00:16 +0000 Kara Swisher http://kara.allthingsd.com/?p=20786

Yahoo CEO Carol Bartz is making the most substantive changes in her exec ranks since she did a massive restructuring of its staff in late February, according to sources close to the situation.

“She is continuing to clean the place up,” said one top exec about the moves, which are likely to be announced internally tomorrow.

Among the shifts in management will be filling the slot left by the departure of North American Audience head Jeff Dossett in May.

UPDATE: Sources say Yahoo’s head of mobile, David Ko, will get the job of top Audience exec, although it is not clear if he will have the same portfolio has former media heads at Yahoo.

Since Dossett left, his job has been split between Jimmy Pitaro, who runs Vertical Audience Experiences, and Tim Mayer, who is in charge of Search & Social Applications. They both currently report to U.S. EVP Hilary Schneider.

The job of Audience head is a key role, given that Yahoo’s powerful media properties are among its most valuable assets. In recent months, Yahoo has made some major changes in the way it creates its juggernaut News property.

Also to be filled is the job being done by Corporate Partnership SVP Jim Schinella, who, as BoomTown previously reported, is set to leave at the end of the year.

I could not determine who will take Schinella’s job, inside or out.

Interestingly, Yahoo has yet to name an international head.

Sources said the company had filled the position, using a headhunter, but the London-based media exec candidate backed out at the last minute. That meant Yahoo had to restart its search.

There might also be other top exec changes, all part of Bartz’s consolidation of power at Yahoo. She has named a spate of new top execs from outside, but has also kept some from the regime of former CEO and co-founder Jerry Yang.

These staffing moves have come even as a stream of execs continued to depart the Silicon Valley Internet giant, including, most recently, Mike Walrath, who was SVP of advertising strategy. Walrath had led Right Media, the online ad exchange Yahoo bought for $680 million in 2007.

Walrath was widely expected to leave Yahoo in July, at the completion of his earnout from the acquisition, sources said, so the move was more sudden than expected internally.

Sources noted that Bartz moved Walrath’s departure forward in order to announce a new strategy for Right Media focused on premium publishers and to dump those ad networks and publishers of lesser ilk.

Whether this will stop the competitive onslaught in the ad exchange space is an open question given that Google has entered the fray significantly and that Facebook is widely expected to bolster its efforts.

Lastly, several sources said that there are also likely to be more changes on Yahoo’s board, which has seen the departure of two members recently.

In September, Maggie Wilderotter said she would leave the board by year’s end. And former Yahoo nemesis and investor Carl Icahn left the board in late October.

Whether Yahoo will replace them or keep its current size of 10 directors is not clear.

Also possible, several sources said, would be Bartz taking the chairman title, which is currently held by Roy Bostock. Bostock, along with Yang, played a key role in its botched takeover battle with Microsoft (MSFT).

Bartz finally successfully struck a sweeping search and advertising partnership with the software giant this summer, which is moving closer to being launched.

]]> http://allthingsd.com/20091118/yahoos-bartz-shuffles-the-exec-deck-filling-audience-and-other-top-slots-is-the-board-next-for-a-makeover/feed/ 1 http://allthingsd.com/20090226/new-yahoo-management-structure-the-entire-memo/ http://allthingsd.com/20090226/new-yahoo-management-structure-the-entire-memo/#comments Thu, 26 Feb 2009 19:46:10 +0000 Kara Swisher http://kara.allthingsd.com/?p=10432 Along with Yahoo CEO Carol Bartz’s external email earlier today, the company also outlined the new structure in another memo.

It’s pretty much what BoomTown has been reporting all week about the reorg.

Top-down simplification, which is another word for: Carol rules over Yahoo (YHOO).

CTO Ari Balogh gets a lot of stuff as new head of products, and so does U.S. head Hilary Schneider, including mobile, as EVP of North American Region. Both report to Bartz.

Unmentioned, but Audience Products head Ash Patel is still in. So is General Counsel Michael Callahan.

New chief marketing officer is Elisa Steele, who come from NetApps (NTAP). Bartz happens to be on the board of NetApps, by the way.

New International head TBD.

Bartz also sent an email to employees about the changes.

Here is the entire memo:

New Yahoo! Management Structure Overview

February 26, 2009

· Our goal as a company is simple: to consistently deliver awesome consumer and advertiser experiences everywhere in the world we do business. So we’re creating an organization to enable improvements in our product quality and operational efficiency, as well as clear decision making and accountability.

· Tech and Product groups will be combined to create a single organization called Products. Products will be led by Ari Balogh as EVP of Products and CTO, reporting to Carol Bartz, with the goal of enabling extraordinary consumer experiences tied to compelling advertiser and publisher offerings. This organization is responsible for the vision, strategy, and quality of every product we create–regardless of region, device format or category.

· There are now two regions–North America and International. The regions are responsible for delivering Yahoo!’s products, programming and services to consumers, partners and advertisers in local markets. North America will be led by Hilary Schneider, EVP, North American Region, reporting to Carol Bartz. International’s leader will be hired soon.

. Mobile will continue to be a key priority for Yahoo!. Going forward, David Ko will lead the mobile business, strategy and monetization teams for Yahoo! (Head of Global Mobile Business, reporting to Hilary Schneider). All of our product teams will be responsible for incorporating mobile innovations into their products.

· A Chief Marketing Officer (CMO) role has been created to oversee our global marketing strategy and provide direction for our marketing function. Today, we named our new CMO, Elisa Steele. Elisa starts on March 23. She will bring together the various marketing teams that have been spread across the company.

· A new Customer Advocacy group will help us to better hear the voice of the customer (consumers/advertisers) across the company and incorporate what we hear into all our work throughout Yahoo!. We will hire a new leader for this team.

· The newly created Service Engineering & Operations (SE&O) team will be chartered with delivering common technology services at scale, including application management and infrastructure. The team will be led by David Dibble, SVP of SE&O. We’re bringing Service Engineering together as one group because these engineers bring expertise that is best applied horizontally.

· Our corporate functions will consist of HR led by David Windley, Legal led by Michael Callahan, and our CFO is to be hired, with Blake Jorgensen remaining through the transition. Joel Jones will serve as Carol Bartz’s chief of staff.

· This structure is designed to last two to four years; however, we’ll continue to make adjustments as needed. But we expect this core structure will stay in place.

· These changes become effective immediately.

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