The Yahoo board has approved a massive $1.1 billion all-cash deal to buy Tumblr.

It’s not clear when the official vote was taken, but sources close to the board said the acquisition was a foregone conclusion and was unanimously approved by the directors of Silicon Valley Internet giant.

The deal will likely be announced Monday morning, said numerous sources.

AllThingsD.com initially broke the story of the acquisition efforts and later followed up with details of the exact price and the board meeting to approve the transaction.

There were no other competing bids, despite reports, to snap up the New York-based social blogging service. That said, Tumblr had held some very preliminary discussions about various deals with Facebook, Google, Microsoft and also Twitter earlier this year.

As part of the Yahoo deal, Tumblr CEO David Karp — who will get a windfall of cash from the acquisition — will stay at Yahoo for four years at least and retain a lot of control over the service, much in the same way Instagram CEO Kevin Systrom does at Facebook. But, as there, Yahoo will undergird Tumblr’s nascent advertising business with its large and established infrastructure, said sources.

Yahoo had been mulling some kind of deal with Tumblr, from a strategic investment to an outright acquisition, for about six weeks. Sources said that Yahoo CEO Marissa Mayer had decided that buying the company was going to be “the stake in the ground of what her strategy is going forward for Yahoo.”

And that is to attract younger audiences with just the kind of user-generated content Tumblr has pioneered to impressive growth.

According to numerous sources, Mayer determined quickly in her research that the site was just the kind of property that Yahoo needed to make it both “cool” and relevant to new consumers.

Yahoo is looking to bolster its strong set of existing media offerings to appeal to a different demographic and also get into the social space via consumer-based software solutions that are both elegant and easy to use.

Tumblr’s mobile usage has also been strong, which also interested Mayer. While Tumblr started as a desktop-based service, its mobile offering has ramped up quickly in the last few years. ComScore says that a quarter of the service’s U.S. visitors now come from mobile devices.

At this price, it will be Mayer’s biggest acquisition so far. Since she became CEO last summer, Mayer has made only a series of small acquisitions of mobile startups at a low cost.

According to sources, the Tumblr brand will continue.

The deal, if consummated, will be a big win for investors. In a series of fundings since 2007, Tumblr has raised $125 million so far and is now at a reported valuation of $800 million. Investors include Spark Capital, Union Square Ventures, Sequoia Capital, Greylock Partners, Insight Venture Partners and the Chernin Group.

While Tumblr’s Karp has resisted various offers for the company over the years, Mayer spent a lot of time with him reassuring him that Yahoo could turbocharge his business. He has also been searching for a COO to help him build out the infrastructure of its business, especially its advertising one.

And as Peter Kafka and I previously wrote, Tumblr could certainly bring Yahoo a big, young audience. Its worldwide traffic was at 117 million visitors in April, according to comScore. On its home page, Tumblr claims it has 107.8 million blogs and 50.6 billion posts. U.S. desktop traffic to Tumblr was 37 million in April, close to LinkedIn and Twitter, although Twitter obviously has much more via mobile.

But figuring out how to make money from that is a task that the company has only recently started to tackle.

Like other recent Web startups that have seen rocketship growth — see: Twitter, Facebook — Tumblr resisted advertising for its formative years, and its user base seems particularly unwilling to accept standard banner ads. In addition, many industry observers think that Tumblr’s pages are packed with porn or other questionable content that would scare off advertisers.

But within the last year or so, Tumblr has started selling modestly sized “native ads” promoting brands’ Tumblr pages, on users’ “dashboards,” which has shown promise. Tumblr has said it had $13 million in revenue last year and sources said it could get up to $100 million this year.

Tumblr has been represented by Qatalyst Partners’ Frank Quattrone, while Yahoo’s Mayer, as well as M&A head Jackie Reses and CFO Ken Goldman, have been on the company’s side.

Interestingly, what got me first focused on Tumblr last week were Goldman’s comments at JP Morgan’s Global Technology conference last week, where he underscored the need for the aging Yahoo to attract more users from the coveted 18-to-24-years-old age bracket. Along with more marketing, he explicitly said Yahoo needed to be “cool again.”

“One of our challenges is we have had an aging demographic,” said Goldman at the Boston event. “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”

Tumblr, apparently, fits the very expensive bill.

According to numerous sources close to the situation, Yahoo CEO Marissa Mayer recently met with top execs at Hulu, the premium video service whose big media company owners have been considering selling it for some months.

Sources said Yahoo is “in the process,” although the Silicon Valley Internet giant has not made any kind of formal bid. Other players whom sources said are considering purchasing all or parts of Hulu include: Former News Corp. COO Peter Chernin, who now has a successful and well-funded multimedia and investment company called the Chernin Group; Guggenheim Partners digital arm, which is led by former Yahoo interim CEO Ross Levinsohn; and Amazon.

Sources said Mayer also had an extensive getting-to-know-you meeting, which was apparently not held at Hulu’s offices in Santa Monica, Calif., along with COO Henrique De Castro. The discussion is taking place in the wake of Yahoo’s failed bid — largely engineered by De Castro — to purchase a majority stake in France Télécom’s Dailymotion video service, after a top French government official said Yahoo could not own 75 percent of the company.

Had the deal — which was reportedly valued at $300 million — gone through, it would have been the most significant by Mayer since she took over at the company last July. Thus far, she has limited her purchases to small mobile startup.

While the meetings with Hulu are only preliminary, Yahoo has been to this video rodeo before, having seriously considering buying Hulu when it was previously being shopped by its owners, News Corp., Disney and Comcast. (News Corp. also owns this site.)

Of course, if Yahoo’s interest becomes more serious, Mayer will have to make important visits to top execs at those media giants, since they control the rights to critical content, and thus Hulu’s value.

As Peter Kafka noted in a previous post about Hulu’s possible sale, “much hinges on the licensing rights News Corp., Disney and Comcast would provide for the money-losing site, as well as what happens to the $300 million debt its owners have taken on in the last year.”

Without those rights, Hulu by itself is a very pretty Web site and video platform, but not worth the billions it would be with very long-term television rights, content that attracts users. Currently, sources said its media owners are offering two to three years of rights, with a lot of flexibility over removing content from the site, which is not quite as attractive a deal (to say the least).

But video is a key component of Yahoo’s strategy going forward. Along with mobile efforts, Mayer has explicitly told investors that video was a key to company under her tenure.

Coincidentally, today in an onstage interview at a Wired conference in New York, Mayer broadly addressed the video issue when asked a question about the topic, noting it was important across all of Yahoo’s properties.

“I think video is really important … video is something that we’re all innately designed and born to experience, everyone is born being able to watch and to hear,” she said. “Video is just this amazing format.”

Mayer would know that well, having been at Google when the search giant bought YouTube, ironically snatching it at the last minute from a competing bid by Yahoo, which was then led by Terry Semel. Since then, YouTube has become the most important and powerful player in the space by far.

Yahoo, despite being one of the largest video players on the Web, has mostly been a lackluster competitor in the arena, pinging over the years from creating original content to doing branded deals with media companies, but never establishing a major beachhead with consumers as Hulu did from scratch.

Short of a full acquisition, there may be a way for Yahoo to partner and invest in Hulu, instead of buying it outright that works for all sides — owners get a new owner to foot part of the bill and also increase distribution, and Yahoo can claim that it’s providing users with exponentially more content that would help Yahoo’s long-declining engagement problem.

Sources said News Corp. and Disney have mulled scenarios where one or both companies hang on to the site, while Comcast has no control over Hulu’s fate, having given up its management rights to the site as a concession to federal regulators.

But the strength of the Hulu brand is clear and it has had some success in building a more significant business. While a lot of its video offerings are free, about four million people are paying for a Hulu Plus subscription.

Still, Hulu’s strength might be lagging, especially given after talented founding leader Jason Kilar recently left. Last year, Hulu was a top 10 video site, according to comScore. No longer — in a report in March, it had dropped out of the top 10.

While this likely has more to do with methodology than real decline in Hulu ratings, it does show that while it’s the biggest thing Yahoo could buy or invest in, Yahoo itself has plenty of video views, many more than Hulu.

The question for Mayer then is how much of Yahoo’s multi-billon-dollar cash kitty she wants to bet on a big video play. She might also be considering buying several smaller ones, said sources, with Yahoo having also looked at some smaller video sites, including Blip and Grab Media.

A spokeswoman for Hulu declined to comment and Yahoo PR has not responded to a query for comment (if ever).

Yahoo has bought Summly, the mobile news reader app founded by a young British entrepreneur.

In a statement, the London-based company said it had bought the tiny outfit, which will close its app. The price was not disclosed (although I will try to find out soon enough). But the company had been seeking additional funding recently at a big valuation, in stark contrast to its small size (less than one million downloads), staff (five) and business model (zero revenue).

(Update: Sources tell me Yahoo paid just about $30 million for Summly, mostly in cash, with 10 percent in stock, for three employees.)

AllThingsD.com reported in December that Yahoo was looking closely at the startup, with CEO Marissa Mayer meeting with its founder Nick D’Aloisio. As we noted then, Yahoo was aiming at trendy mobile “acq-hires” to give the sleepy Silicon Valley Internet giant some sizzle and improve its moribund mobile offerings.

Mayer has been buying up a range of similar small mobile startups, largely for their teams of talented and innovative engineers. And, at a recent employee meeting, its M&A head Jackie Reses said the Silicon Valley company was looking at two significant purchases and a half-dozen smaller ones.

Said Yahoo: “Founder Nick D’Aloisio and the Summly team are joining Yahoo! in the coming weeks. While the Summly app will close, we will acquire the technology and you’ll see it come to life throughout Yahoo!’s mobile experiences soon. We’re not disclosing purchase price or other terms of the deal.”

Yahoo mobile head Adam Cahan wrote a blog post about the deal, as did D’Aloisio, who also tweeted news of it:

@summly has signed an agreement to be acquired by Yahoo!! Excited for the next chapter of Summly! Thanks to all who have supported me.

— Nick D’Aloisio (@nickdaloisio) March 25, 2013

News readers have been getting snapped up of late. CNN acquired Zite for $20 million in 2011, while we reported that LinkedIn was in the midst of buying Pulse for upwards of $50 million.

The 17-year-old D’Aloisio created the high-profile news reading app, which garnered much attention in the last year in the mobile space, which is probably what attracted Yahoo to it.

As I wrote:

D’Aloisio — who looks like he could easily be a member of One Direction if this tech thing did not work out — is perhaps a perfect storm for Yahoo, which is seeking to show that it can attract innovative, young entrepreneurs to the company, while also looking to strengthen its nearly bare mobile cupboard.

Summly is all that and a bag of (fish and) chips, with a very slick app for the Apple iPhone that has become one of the more popular in the App Store since it was re-launched last month. The company has said it has been downloaded 500,000 times.

It deserves the attention, as it is a pleasure to use — think an even hipper version of Flipboard with some more sass. The handsomely designed app summarizes news stories — all using a natural language processing algorithm — in only a few sentences and in under 400 characters. Users can then swipe through topics and stories quickly and click in to be directed to the full story on the original news site.

Summly originally started as a prototype app called Trimit, which soon garnered attention and seed funding from Hong Kong billionaire Li Ka-Shing’s investment firm. In no time, it had a range of other investors, ponying up about $1.5 million, including trendy ones like Ashton Kutcher and tech types like Zynga’s Mark Pincus, Automattic’s Matt Mullenweg and Airbnb’s Brian Chesky.

Since then, it has been striking content deals, including with News Corp. (which owns this site) and others, which seem to be attracted by its investor pedigree, its solid technology and — perhaps most of all — its media-darling founder.

To get an idea of the adorable hip factor involved, here’s a really clever video D’Aloisio did with actor Stephen Fry, who is also an investor in the startup:

Summly Launch from Summly on Vimeo.

At a Morgan Stanley investment conference today, the affable Yahoo CFO Ken Goldman put in an appearance to talk about life at Yahoo since he got there last fall.

Unfortunately, he said almost nothing new in an onstage interview and, more importantly, did not address the hot-button controversy around the work-from-home ban that CEO Marissa Mayer instituted last week.

To be fair, that’s because Goldman was not asked by anyone about the issue, which is perhaps not a surprise at these hand-holding investor events. But he did make a veiled reference when touting its “strong leadership” now.

“What gives people confidence is that we’re making decisions,” he said. “The worst thing to do in a company is to waffle.” But Goldman then added obliquely that some people like those decisions and “some people don’t.”

No, they don’t! Woo-hee, has this one blown up!

The work-from-home debate has certainly exploded across the landscape this week, after an edict to eliminate the long-time employee policy at Yahoo, especially since most other Internet companies tout flexible work arrangements.

But, apparently, Mayer thinks Yahoos have abused the privilege — she noted at an employee meeting last week that VPN logs showed work-at-home staff did not sign on enough — and a Yahoo internal memo said that working “physically together” was the way to reenergize the lagging fortunes at the company.

Opinions inside Yahoo about the topic have been mixed but heated, essentially pitting employees against each other in an awkward way. But the reaction from outside the company has been decidedly negative.

At the Morgan event in San Francisco, Goldman instead focused on the sunnier side of the street at the Silicon Valley Internet giant, noting the Mayer regime was focused on increasing user engagement, international presence and broadening its demographics.

“The thing that just struck me over and over is how much has been done by this company that is really new,” said Goldman, pointing inevitably to the new free food policy — which has long been common across Silicon Valley — as well as a quarterly goal system, employee reviews, weekly FYI meetings and more.

Referring to internal polls showing increased confidence among staff, he added: “What really strikes me is how much has been done to really improve the quality of life at Yahoo.”

Goldman also touched on the need to increase revenue, spur innovation and also some upgrades of core products such as Yahoo Mail and its famous homepage, although leaving out that this had been in the works before the new leadership team was in place.

He also talked, as Mayer has a lot, about the importance of mobile to the future there, noting that the mobile revenue was still “modest.” (Goldman declined to say just how modest, but I posted that depressing number here.)

“We just got into this is a major way,” he said, asking investors for patience to get up to mobile speed at Yahoo. “I think we have been clear it will take us some time, but we have taken some positive steps.”

Last week, a fierce debate erupted over a range of social networks and in the media about a story we posted on Yahoo CEO Marissa Mayer’s new decree that employees at the Silicon Valley Internet company would no longer be able to work from home.

In a sometimes awkwardly worded internal memo I posted from Yahoo HR head Jackie Reses, the company rolled out the new rule — pushed through by Mayer — which requires that Yahoo employees who work remotely relocate to company facilities by June 1.

“Speed and quality are often sacrificed when we work from home,” read the memo to employees. “We need to be one Yahoo!, and that starts with physically being together.”

The goal of Mayer to cure what ails Yahoo: Reviving a moribund and enervated workforce that has struggled to innovate and excel over many years. One of the many problems has been the liberal use of work-from-home policies that have been woefully mismanaged to create a culture that is simply not energized.

But, unless I am reading the memo wrong, the ban is not just limited to those who have arrangements to work from home full time — which number in the hundreds — but also employees who take one or two days a week at home.

Top sources told me that Mayer has been particularly irked about Yahoo parking lots that are slow to fill in the morning and quick to empty by 5 pm — which is atypical at other tech companies such as Google. (Mayer was a longtime exec at the search giant.)

At first, she tried to change culture in ways that rained down tasty perks on employees — such as free food and smartphones. Mayer has also been practical, instituting please-be-here Friday afternoon FYI weekly meetings and stricter performance reviews.

But she is now inevitably doling out more unpleasant medicine to the troops, starting with the banning of work from home, which has caused a big ruckus both internally and externally.

Some inside the company are clearly appalled, especially since it might more severely impact working mothers.

“When a working mother is standing behind this, you know we are a long way from a culture that will honor the thankless sacrifices that women too often make,” read one email I got from an internal source, referring to the recent birth of Mayer’s baby.

Many others at Yahoo’s Sunnyvale, Calif., HQ pointed to the nursery Mayer had built — for which she paid personally — next to her office as a perk others at Yahoo do not get.

“I wonder what would happen if my wife brought our kids and nanny to work and set em up in the cube next door?” joked a husband of another employee who will be losing her work-from-home privileges.

Yahoo employees, as far as I can see from its company careers page, offers the typical Dependent Day Care Flexible Spending Account, where staff can pay “dependent care expenses, such as day care or after-school care, with pre-tax dollars.”

While it is fair to raise the issue of how employees will cope given the sudden change in HR policy, others also think that limiting work at home is a good idea because it galvanizes culture and creates a spirit of collaboration that has been missing at Yahoo for far too long.

“Marissa is doing what good leaders do,” wrote one person on Twitter. “Making sure her Yahoo team is communicating & working TOGETHER.”

That is actually a sentiment expressed by Google CFO Patrick Pichette at a recent talk in Australia, when asked about telecommuting at Google:

“The surprising question we get is: ‘How many people telecommute at Google?’ And our answer is: ‘As few as possible’ … There is something magical about sharing meals. There is something magical about spending the time together, about noodling on ideas, about asking at the computer ‘What do you think of this?’ These are [the] magical moments that we think at Google are immensely important in the development of your company, of your own personal development and [of] building much stronger communities.”

That said, officially, many Googlers are allowed and even encouraged to work at home. The company told me when asked about work-from-home policies: “We do not have a formal policy and leave Googlers to use good judgment.”

It is the same for Facebook, which confirmed a “policy to provide flexibility as work permits.” In fact, one exec at the social network giant noted to me that its entire camera app was built from an engineer’s garage, with the group staying away from the office as long as they wanted to build it from home.

Business networking site LinkedIn also said it had “no formal policy at present,” but noted that many employees work from home full-time and part-time as the situation warrants and in consultation with managers.

It goes on and on like that throughout the tech scene, part of an ethos of letting tech talent make its own rules — from what they wear to when and where they work — that is deeply ingrained in the culture.

A Hewlett-Packard spokesperson said of the tech giant: “We do not ban [work from home] and many HP people do it … it is not at all an issue at HP and hasn’t been for years. Some folks have a regular schedule, while others can do it from time to time with the okay of their supervisors.”

An AOL spokesperson said the company doesn’t ban work from home.

A Netflix spokesperson referenced a well-known premium video company’s job deck, which stressed a “freedom and responsibility culture” and notes, “We don’t measure people by how many hours they work or how much they are in the office. We do care about accomplishing great work.”

Twitter had a different twist, but still supports working from home. Said a spokesperson: “We believe there are significant tangible and intangible benefits when employees are working under the same roof. We also recognize that every so often it’s important to be able to work remotely, and we allow for that flexibility.”

A Cisco spokesperson said the networking company also allows it, but it has to be approved by a direct manager: “It is certainly utilized by those employees who earn it. And, of course, with our collaborative suite of technologies like Webex (with video) and telepresence it is the next best thing to being there in person.”

A Microsoft spokesman said that the software company “offers flexible work schedules for all employees.”

Perhaps one of the best companies for a long time in the telecommuting space has been IBM. From its corporate Web page, also touting the environmental benefits:

“IBM was one of the first global companies to pioneer programs to reduce employee commuting. It has sustained these programs for nearly two decades. Two key aspects are its (a) work-at-home program and (b) mobile employees program. Today, more than 128,000 (29 percent) of employees globally participate in one of these programs. In 2011, in just the U.S. alone, IBM’s work-at-home program conserved approximately 6.4 million gallons of fuel and avoided more than 50,000 metric tons of CO2 emissions.”

Startups are much the same.

Said an Airbnb spokesperson of the online housing rentals site: “It’s a flexible policy and managers determine what’s appropriate on a case-by-case basis.”

At location startup Foursquare, a spokesperson said, “Our policy is to allow for ‘flexible work hours’ — and that applies to both the hours you work, and where you work from. While we don’t have any dedicated remote employees, our folks do work from home on occasion and we’re fine with that.”

Private social networking company Path is much the same, according to a spokesperson: “Path has a work-from-home policy. The manager and employee work out the details together.”

The only company I queried that did not respond immediately is Apple, which has been known for a long time to have much tighter rules with its employees. I will update when I hear from the company.

I also have emails in to Amazon, which is already known for flexible working policies.

But, overall, Mayer is forging new ground with her work-from-home ban. Whether that is enough to turbocharge the Yahoo culture is anybody’s guess.

The culture-celebrating hijinks continue at Yahoo, it seems.

After free food and smartphones and even dressing up as a Yahoo purple banger, CEO Marissa Mayer now has a high-ranking exec dancing for employee enjoyment.

As part of an effort to improve participation in the annual Yahoo Employee Satisfaction Survey (YESS), Mayer instituted a punishment for the lowest participation rate of any division on her executive staff.

The culprit turned out to be Jackie Reses, EVP of people and development for Yahoo, which includes the unlikely combo of human resources and business development.

Thus, Reses apparently had to dance to the hit K-pop song “Gangnam Style” with her staff at the weekly FYI employee meeting at Yahoo’s Sunnyvale, Calif., HQ on Friday.

Despite having a rep as an intense New Yorker, said one employee, Reses has some “decent moves.” Others agreed.

Also decent was one of the top results of YESS, which showed that employee belief in the future vision of the company was up 32 points year over year.

That’s not a big surprise, given the upward trajectory of Yahoo’s shares of late. But, more to the point, it has a weak comparable in last year’s survey, which painted a picture of a deeply demoralized workplace. That’s because the 2011 YESS questions went out to employees the week that the company fired CEO Carol Bartz, with most of the responses gathered in the ensuing weeks.

Despite the improvement, this year’s YESS also still showed a lot of worry about whether Yahoo leadership can execute, and whether the company can achieve strong results over the long term.

[UPDATE: One reader said the Yahoo survey is now called YEES, the Yahoo Employee Engagement Survey. I could not determine if that name change had been made.]

That’s the question that at least one Wall Street firm was asking, in a downgrade of Yahoo stock today. In dropping Yahoo’s rank to “market-perform,” Sanford C. Bernstein analysts noted worries about its turnaround efficacy, a possibly jarring reorg of its advertising unit, and also whether the future sale of its assets in China’s Alibaba Group can save the day again, as it did for last quarter’s results.

“We think there may be upside from an eventual Alibaba IPO at a valuation much higher than $50B or a Yahoo! core turn-around, but it is hard to have high conviction in either given the facts we currently have,” said the report, in part. “In addition, there is manageable but real downside risk: reorganization (e.g., of the sales force) could be negative for revenues, management could decide to invest in growth now and cut excess later, and MSFT RPS guarantee could expire without a renewal.”

Those are all good questions for investors to ask, of course, although more have been caught up in the hype/hope ahead of actual performance gains.

Still, it’s no sweat to get caught up in digital execs being made to trip the light fantastic for their weak results. So, since I was not there to enjoy Reses’ performance, click here for an also fun-tastic JibJab Gangnam video I made of her.

So far in the six-month reign of Yahoo CEO Marissa Mayer, there has been a pile of attention paid to the flashy cultural changes (free food!), much-needed rehauls of key mainstays (Flickr, Yahoo! Mail, homepage), a focus on attracting entrepreneurial talent (Hey, we got Max Levchin to join the board!) and, of course, the frequent mention of mobilemobilemobile by the former Google product exec.

But on the topic of where the Silicon Valley Internet giant’s search and display advertising business is headed — which is, of course, its key revenue and profit generator — it’s pretty much been crickets.

No longer, it seems, according to multiple sources inside and outside Yahoo. Mayer is planning a series of appearances at the upcoming Consumer Electronics Show — which is taking place in Las Vegas in less than two weeks.

That includes sitting for a high-profile fireside chat with Starcom MediaVest Group Global CEO Laura Desmond in front of several hundred ad clients on Wednesday, January 9; organizing a plethora of one-on-one meetings; and throwing a Yahoo dinner party, as well as angling for invites to key parties thrown by others, such as MediaLink’s power player dinner on Tuesday, January 8.

As I previously reported, the company is planning on having this much more prominent presence there in order to reset its sometime rocky relationship with advertisers.

And, not surprisingly, its big weapon at the giant annual confab will apparently be Mayer, who has not yet interfaced significantly with the company’s big ad clients since taking the top job in July. At CES, sources said, Yahoo is hoping the “Marissa Halo” — i.e. the excitement around the decidedly telegenic exec — will help boost its business.

It’s important, since big agencies and advertisers have privately been grumbling about the lack of outreach by Yahoo and also how much more active execs at rivals such as Facebook, Google and AOL have been.

More than one source close to Yahoo said the dissatisfaction was being heard loud and clear at the company. “[Everyone will] take it as an opportunity to vent (again), while Yahoo promises a new beginning,” said one exec.

New beginnings will again be the case, though, with new COO Henrique De Castro also in place. He’s been making a series of moves to rejigger the ad business at Yahoo since he got there earlier in the fall, also from Google, including shifting its sales process to a category model.

In addition, Yahoo execs have continued their noodling on whether or not to make significant ad tech purchases — with no major deals in place yet — along with improving the creaky performance of the company’s own owned-and-operated offerings.

It’s all in the hope that advertisers and agencies will reconnect with Yahoo after the nearly consistent CEO changes over the last year. For those keeping score, after Carol Bartz was fired in the fall of 2011, CEO Scott Thompson made his debut at CES in early 2012, touting Yahoo’s data prowess before being ousted only months later. He was followed by renewed efforts toward marketers by interim CEO Ross Levinsohn.

And now there’s Mayer.

Interestingly, while many major ad players are looking for more specifics about how Yahoo will improve its mobile, search and data products to give better insights to advertisers, they also are simply wanting to hear Mayer’s plans for Yahoo.

“What I don’t see yet is what the vision for Yahoo is, articulating the bigger ideas than just presenting an assemblage of products,” said Rob Norman, chief digital officer of GroupM Global. “And what everyone would still like to see is what is the escape route from being a portal or even reemerging from what that means, so I am really interested in what she has to say.”

Added another top ad exec: “She really has not said anything yet about how she plans to capitalize on Yahoo’s strengths over the next year in the ad space. People are genuinely excited about Mayer, but the stakes are still high for her since everyone feels as if they have already given Yahoo a lot of extra chances.”

High stakes, indeed. But, then again, it is Vegas.

In what will be a major shift in how the Silicon Valley Internet giant sells online advertising, Yahoo’s new COO Henrique De Castro has briefed employees on a plan to move its sales organization to a “category” model, according to numerous sources close to the situation.

Simply put, that means its sales reps will sell all of Yahoo’s ad products, as well as its search offerings, in a vertical process organized around advertiser segments, such as automotive, entertainment and packaged goods.

This is how Google, where both De Castro and CEO Marissa Mayer recently worked, conducts its ad sales efforts. (After copying free food and smartphones, staff evaluation efforts and more, What Would Google Do seems to be strategery at Yahoo these days.)

In contrast, Yahoo has long sold its advertising in a regional and tiered organization against premium and performance inventory in display and search.

The move from regional to vertical is a “seismic shift,” said one source quite accurately. That’s because Yahoo’s go-to-market efforts have been designed to avoid vertical conflict and its sales staff have built up advertiser relations across many areas. In a vertical organization, those reps will be forced to give up these long-term relationships with marketers, some of which have been built over years.

There are, of course, many different ways to organize sales — and each has its fans and detractors. But one thing is clear: Making such a major change has potentially large ramifications on Yahoo’s financial performance, at least in the short term, since advertising makes up the bulk of its revenue.

The change might also result in some attrition among the sales staff, said sources, although many at Yahoo are expecting that De Castro will bring in his own execs from outside to help with the transition. (One interesting name I heard floated was former Googler Penry Price, who was close to De Castro when they both worked there. He is currently president of Media6Degrees, an ad targeting start-up.)

De Castro (pictured here) will need all the help he can get as he overhauls Yahoo’s sales efforts. Well-regarded Chief Revenue Officer Michael Barrett left Yahoo in mid-October after De Castro got the COO job.

His departure has left a large gap in sales leadership and in maintaining strong relationships with big advertisers and agencies. De Castro himself is not as well known in the ad marketplace, despite many years at Google in sales (more on that to come).

Currently, the key ad execs at Yahoo under De Castro are Peter Foster, who heads audience advertising, and Mark Ellis, VP of North American sales and global partnerships.

De Castro outlined the new ad org plan to staff immediately after a multi-day offsite with top sales leaders last week, at which Yahoo’s acquisition options in the ad tech market were also discussed.

Sources said De Castro noted that the changes could take place as early as January 1.

De Castro is also planning to have Yahoo’s annual global sales meeting for the end of January in Las Vegas. Last March, the gathering — then set for about 1,300 advertising staffers in Florida — was cancelled due to a restructuring under ousted CEO Scott Thompson.

In addition, sources said, Yahoo is planning on having a much more prominent presence at the upcoming Consumer Electronics Show — also taking place in Las Vegas in January — in order to solidify its relationships with advertisers.

Its big weapon at the giant annual confab will apparently be Mayer, who has not yet interfaced significantly with the company’s big ad clients since taking the top job in July. At CES, sources said, Yahoo is hoping the “Marissa Halo” — i.e. excitement around the telegenic exec — will help boost its business.

Tonight, new Yahoo CEO Marissa Mayer gave her first public interview since becoming the leader of the troubled Silicon Valley Internet giant.

Not to cranky me, of course, but to the much more amenable Fortune magazine writer and editor Pattie Sellers, who hosted the former Google exec at a dinner in Palo Alto, Calif., as part of the magazine’s Most Powerful Women franchise.

Fortune recently put a glamour shot of Mayer on the cover, and Sellers also did a profile. Now, Mayer was ready to sit down to talk about Yahoo and more.

(I wish I could have reported from the event, and almost did. I had initially been invited to the dinner at the Garden Court Hotel for about 100 guests, mostly women. But I was then waitlisted, and then told by Sellers directly that I could not attend, as the editors had decided to close out outside media and only have Fortune staffers covering it.)

Whatever! I have my ways to liveblog it and do it faster than any magazine writer can — and none involve disguising myself as a cater-waiter or solely using the Twitter feed from Fortune. As if!

Here goes:

7:50 pm: After some lovely cocktails, the audience sits down at about 10 tables of nine people and starts in on the salad course.

Soon enough, the night starts off with a speech by a McKinsey partner (and presumable sponsor of the dinner), delivering some stats as part of a study of some sort about how businesses are using — or should be using — social tools.

More than 60 percent of knowledge workers spend time exchanging information … Social can deliver an estimated $1 trillion in value.

Big news! Not! Even! Slightly! Oh dear, please get to the opening act!

Finally, Sellers gives her intro of Mayer.

8:04 pm: Sellers notes that her conference had hosted Yahoo CEO Carol Bartz in 2010 (she was ousted in 2011), and in 2011 had Mayer when she was an exec at Google (she became Yahoo CEO this year).

Now, in 2012, Mayer is top dog at Yahoo, and the youngest CEO in the Fortune 500.

“Why don’t we just call this ‘the most powerful Yahoo dinner,’” jokes Sellers.

Why not!

Mayer — for those who care, and forgive me, since I am fashion-stupid — is wearing a black frock and some heeled Mary Janes. She gets big applause when Sellers notes that Yahoo stock is up 18 percent since Mayer became CEO.

Note: It did go down when she made a shareholder misstep early in her tenure, but has gone up since she repeated mobilemobilemobile with confidence on a recent earnings call that got investors excited about her tenure.

8:08 pm: By the way, Mayer put in a call for people to vote for her as Time magazine’s Person of the Year (she is on the list of nominees — more kudos from a Time Inc. property).

Mayer starts off with basic PR messaging that she trotted out previously on the recent earnings call, around how she wants Yahoo to be focused on “delighting and engaging users” and how it is a brand that touches people every day.

Therefore, its products need to be inspiring and delightful.

Daily delight! This is the buzzword.

Also, she notes, Yahoo should be the bestest place to work.

As apparent proof of that, Mayer says that all Research In Motion BlackBerry smartphones have been banished, and that Yahoos will be using Apple’s iPhones, Google’s Android phones and Microsoft’s Windows phones.

This has been endlessly reported, even though most other Internet companies do this, but it’s a good line, anyway.

8:12 pm: By the way, iPhones are the most popular with Yahoo employees.

News at 11! (I will add that iPhones are the most popular with the Swisher boys, too, and — irony alert — one of their moms works at Google.)

Sellers then asks about what makes a good product, which is precisely why the product-savvy Mayer was brought in to fix Yahoo.

Says Mayer: “Acute user need.”

I acutely need doughnuts. Does this count?

Also, says Mayer, products have to be created in a way that is “frictionless and beautiful,” and that the offering cannot get in the consumer’s way.

Sellers asks her to name a great product. Mayer notes that she was not talking acquisitions, but quickly namechecks the iPhone and Google.

Since those companies’ market caps are a billionty times bigger than Yahoo’s, she def cannot acquire anything there.

8:17 pm: Mayer also apparently likes some kind of luxury paper made in Germany that looks like velvet. It’s Gmund, by the way.

The topic moves on to Flickr, the once hip photo-sharing service that Yahoo bought and proceeded to ignore. Meanwhile, Instagram.

Mayer says that Yahoo needs to focus on the “global suite” services that are excellent, and on executing them well.

She points out Yahoo’s fantasy football service, mentioning its recent breakdown on game day that sent fans into a tizzy.

It’s a they-love-us-so-much-they-hate-us point.

Yahoo will not do things like online maps, though, Mayer says, noting that where Yahoo cannot compete, it should partner.

Sellers asked about acquisitions.

Mayer: Mobilemobilemobile! (It worked before!)

8:22 pm: Mayer then mentions the importance of small teams that work together, such as its recent Stamped purchase.

She notes that the bigger and more strategic opportunities are around advertising technology. Calling the Rubicon Project!

Mayer veers away from a question about layoffs, a sad Yahoo tradition. I have reported previously that she will make cuts via performance reviews.

At Yahoo, she says, it’s now about performance, not potential: “No offense to potential, but what we really care about now is performance.”

No offense taken!

Also, everyone’s goals will be posted on the Yahoo Web site for everyone to see.

Oh, wait, there will surely be offense taken by those lazy potential people at Yahoo.

Mayer does add that Yahoo should be a “growth company,” and not one defined by cuts.

8:28 pm: “The consumer Internet is growing, and we need to invest,” she says.

To achieve this will be a hard job, and will take multiple years, she adds.

Sellers asks about the Disney turnaround, which Mayer is apparently fascinated with. Mayer does indeed love Disney.

Who doesn’t? (Well, me, but I am an outlier.)

Speaking of Disney, one of its directors, Facebook COO Sheryl Sandberg, sent regrets, but has emailed a question from its board meeting in New York.

Sandberg once worked at Google with Mayer, though the pair is still not working on a search engine together.

Sandberg asks what was most surprising to Mayer about taking over at Yahoo.

Mayer says she thought the job would be hard, and her new baby would be fun. Mayer had her first child at the end of September.

“The job is fun, and the baby is easy,” says Mayer.

Sellers wants to know how Mayer gets it all done. The answer: “Ruthlessly prioritize.”

She notes that that’s why she has not talked to the media at all, and why she will not be talking after this event.

(Well, I guess I will go back to not waiting by the phone for Yahoo PR to call back. Hi Anne! — also looking forward to not getting the holiday media party invite, which is no prob as the Googlers are throwing one the same night and they usually have organic arugula picked by elves they employ that’s acutely delicious.)

Then, as a Wisconsin Green Bay Packers fan, Mayer does her version of the famous Vince Lombardi quote: “God. Family. Yahoo.”

Cheesehead moment! And Mayer and I have so much in common! Mine is: Dog. Family. Yahoo.

8:33 pm: Sellers throws in one more question from famed investor Warren Buffett, who apparently wants to know what, if Mayer was not CEO of Yahoo, would she want to run?

Not Berkshire Hathaway! Mayer says she would build something herself.

It seems as if that is what she is doing at Yahoo, so we await the result.

Until then, Mayer’s mum. So to speak.

According to sources close to the situation, several Groupon board members have been seriously discussing making major leadership changes at the Chicago-based daily deals company, including bringing in a more experienced CEO to take over for co-founder Andrew Mason.

The board of Groupon has a regularly scheduled meeting later this week; sources said such management issues are likely to be discussed there, due to increasing frustration by some directors about the novice CEO’s performance so far.

To be clear, a move to replace Mason is not likely to happen immediately, if at all. And, in any case, any changes are likely to be done with his involvement. In addition, Mason also has support on the eight-member board — director and former AOL exec Ted Leonsis has always been a key mentor to him, for example.

But it has become obvious over the last months that a substantive rift has been developing between Groupon’s key players.

That has centered on Mason’s co-founder and Groupon executive chairman, Eric Lefkofsky, and board member and co-founder Brad Keywell. They, as well as several other directors, have been urging Mason to be more aggressive and public about the company’s turnaround efforts, sources said.

“The question is not whether Andrew is a good guy, but whether Groupon needs an Eric Schmidt,” said one person close to the situation, referring to the former Google CEO who was brought in to work closely with the company’s two founders. “And there’s been a lot more pressure now on the board to consider this seriously.”

The thoughtful and affable Mason — who has been the heart and soul of Groupon’s quirky culture and innovative product strategy — has indeed sometimes seemed to be in over his head in terms of leadership once the stakes got higher and the pressure increased after its IPO was announced last June.

While the company’s struggles have been well known for a while now, discussions about Mason’s tenure as CEO have increased as its stock has dropped precipitously. That has prompted its directors and management to seek to find a way to get the company on more stable footing as a business and, perhaps more importantly, with investors.

That has included the promotion of former Amazon exec Kal Raman to COO recently to give Mason more support. Raman is now, in effect, in charge of many operational aspects of the company, although not product, marketing or technology.

Another bright light recently has been a major investment by Tiger Global Management, a well-regarded hedge fund and private equity firm, which bought up close to 10 percent of Groupon. The move sent its shares up 24 percent in the last week, to $3.88, with a $2.5 billion valuation.

But that’s still 85 percent below its public offering price a year ago, and a far cry from the hype around the company when it exploded on the scene several years ago. Once the darling of the start-up space, with its innovative new social e-commerce model and lightning-fast growth, Groupon attracted huge funding from a panoply of top-tier Silicon Valley investors.

With that came a stunning $6 billion acquisition offer from Google and, later, an even huger valuation of more than $10 billion.

All that goodwill changed immediately after the company announced its IPO last June, with continued controversy around everything from Groupon’s accounting to management turmoil to its business model to rocky relations with merchants.

And while Mason has labored to affect a more professional tone in his own style, and seemed to have created a more stable management team, continued issues in Europe and getting enough traction for a number of new promising product initiatives has been tougher to solve.

Therefore, Mason’s performance is naturally under increased scrutiny, said sources. He will surely get questions on his record tomorrow, when he is scheduled to appear onstage at Business Insider’s Ignition conference in New York.

Charles Sipkins, a spokesman for the board, declined to comment, as did Groupon spokesman Paul Taaffe.

New York magazine just published what will doubtlessly be the first of many larger-scale profile pieces on new Yahoo CEO Marissa Mayer (Fortune’s at work on one, too).

Titled “Can Marissa Mayer Really Have It All?” New York’s version is a very solid and fair effort that raises a lot of pertinent questions about the Silicon Valley Internet giant’s latest leader.

That, of course, includes pondering the high-profile issues around her coping with a newborn (really new) and work; her carefully crafted public glamour-geek-girl persona that is at odds with her sometimes more tetchy private one; Mayer’s mostly-up-and-then-down-at-the-end career at Google as a key exec; and the myriad challenges she faces in turning around the long-troubled Yahoo.

Writes Lisa Miller quite astutely: “This newest version of Marissa, the mom-geek-CEO, will surely test Mayer’s iterative powers, for she’s playing to a tougher crowd, one that won’t be placated by tweets, Manolos, and rapturous praise for pineapple malts.”

Indeed not, which is why sources said Mayer is likely to begin to make postpartum appearances back at Yahoo as early as this week. She delivered her first child with husband Zach Bogue, whom she dubbed “Big Baby Boy Bogue,” on Sept. 30.

Among the initiatives she has been working on up to and after her son’s birth, said numerous sources, is the redo of Yahoo’s powerful home page, a reorganization of top management duties, and an announcement about whether it will buy back shares or give a dividend from its recent multibillion-dollar sale of part of its lucrative stake in China’s Alibaba Group.

In addition, said sources, Mayer is also putting into place her new methodology of keeping track of employee performance and rewards. There is an all-hands meeting scheduled today, in fact, apparently to go over the system, which Mayer spoke about in her last all-hands meeting.

The home page redo is also in the late-stage works for unveiling soon, said sources. Those who have seen it said it has a starker and simpler design ethos, and will stress user personalization, customization and more social elements. It will also have ample opportunity for third-party developers to offer a variety of services on it (maybe Mayer can save Zynga by copying a little bit from Facebook!).

The reorg will also be interesting. Mayer has made a number of top exec appointments, including adding a new CFO and head of HR. She will also be rejiggering other roles of existing management.

For example, expect tech and operations EVP David Dibble — who got a mess of new responsibilities right before Mayer was appointed — to have some of that dialed back.

The disposition of all $3.6 billion of Alibaba cash is perhaps the most immediate issue, especially for investors, who are largely hoping for a buyback of stock. Such a move will likely cause Yahoo shares to rise, as happened at AOL.

That would be nice, since Yahoo stock has stayed pretty flat since Mayer got to the company in July. (That compares, ironically, to a 31 percent rise at Google since she left.)

But Wall Street analysts and others have been making bullish calls on Yahoo recently, including CNBC’s screamy stock guru Jim Cramer of “Mad Money.”

Boosted by the growing value of its Asian assets — in China, as well as in Japan, which Yahoo is trying to sell — and also anticipating some kind of magic mojo from Mayer, price targets for Yahoo shares have been as high as $22.

That was from Goldman Sachs, which reinstated coverage of Yahoo with a “buy” rating recently. Analyst Heath Terry noted that “while user engagement continues to decline, the company lacks a mobile strategy and significant talent has left the company, Yahoo still has hundreds of millions of users, valuable Web properties, and the financial resources to fuel a potential turn around over time.”

Translated: Yahoo kinda stinks, but it still might be able to buy itself out of this mess with a $10.6 billion pile of dough from Asia.

All eyes will be on the actual business Yahoo operates itself in two weeks on Oct. 22, when the company announces third-quarter results. Sources said the quarter will come in as expected, but will still tell a story of lackluster growth in advertising, engagement and, well, every key part of its native offerings.

That said, Mayer is expected to be on the call — her first at Yahoo — to outline her grand vision in more detail, as a spokeswoman has noted.

That’s good, since shiny profiles of her can only do so much. It’ll be nice to finally hear her say something definitive in public about how she’s going to fix the company that has given the mediagenic exec even more press.

(And, let’s hope, without the tweets, Manolos and pineapple malts.)

As most readers know, I love a good internal memo from Yahoo — and now I have landed a really meaty one.

It’s the “Yahoo! Three-Year Product Strategy” plan, a 21-page report that was completed in mid-2011 by a team headed by former product head Blake Irving.

While it is a year old — and five CEOs ago (no, really) — it’s an important read since it tracks closely to the strategic vision that Yahoo’s latest CEO Marissa Mayer discussed earlier this week at an all-hands employee meeting and, according to sources, is very similar to one she seems to be pursuing.

That includes a focus on personalization, mobile, social, improving Yahoo’s advertising tech platforms and more.

And here’s the centerpiece of goals — called “Five Strategic Elements” — from the Irving memo:

1. Infuse deep personalization using science and data into every consumer and advertising experience we build.

2. Delight our customers with best-in-class products, iterating frequently for constant improvement.

3. Build for connected devices first with localized, in-context, multi-screen experiences in mind.

4. Power real social relationships with features that enable 1:few conversations around content.

5. Build a digital media ecosystem that creates a premium marketplace for advertising and content and distributes Yahoo! experiences across the Web.

Sound familiar?

In fact, at the event’s Q&A part yesterday, one staffer specifically pointed out that her broad presentation to employees sounded a lot like the one Irving had proposed the year before.

Since that was never truly implemented, due to never-ending management crises, the obvious question was asked: “Why would things be different this time?”

Mayer answered that the execution against that strategy wasn’t good and she would have a better model to pull it off.

The memo, embedded in its entirety below, is really instructive to use as a possible roadmap, outlining Yahoo’s challenges, as well as the competitive landscape.

Noted the report, quite clearly: “Yahoo! does not have an audience problem, as we are growing on pace with the Internet. Yahoo! does, however, have an engagement problem, as our share of time spent is flat, relative to our competitors.”

It’s aim is to fix that by building the “One Yahoo! experience, in which each of our current and future products fortifies the whole.”

Easier said than done, especially in building up its ad tech business, as the report adds, zeroing in on its most potent rival:

“To defend and grow our share of the premium advertising market, Yahoo! must continue investing to reach parity where necessary and achieve sustainable differentiation against Google with our premium marketplace and technology stack.”

There’s a lot more than that, so dig in to the document, which suggest a whole lot of spending to turn around Yahoo.

Since Mayer is well on her way in that department — including bouncing CFO Tim Morse, who was very bottom-line wary — more on that, next!

You must now download the full report here, which was removed from DocStoc here after a takedown request from Yahoo’s lawyers.

One of the looming — but, thus far unspoken — questions about the strategy that Yahoo CEO Marissa Mayer is set to unveil to the Silicon Valley Internet giant’s employees today at 10 am PT is just how many of them are going to be there to push forward the new turnaround plan she’s envisioning.

While it seems unlikely Mayer will mention this unhappy prospect in today’s all-hands meetings with staff, it’s an issue she will nonetheless eventually have to address.

But, despite promising today’s talk would be an “act of radical transparency,” I am guessing any employee-cutting plans Mayer has will remain decidedly opaque for now.

Still, it’s no secret that most analysts and Internet-savvy observers agree that Mayer must make significant cuts in staff in order to move forward, perhaps well beyond the ones that have been made by her predecessors.

And while every single recent Yahoo exec has done layoffs, usually of several thousand, many investors are watching to see if Mayer will make deeper and more company-changing ones.

“Yahoo probably needs to be cut in half,” said one person close to the company, who has told Mayer this. “But no one has had the guts or stomach to do it yet.”

According to Yahoo’s last quarterly report, it had 12,500 staffers, although that underestimates the number since there are also several thousand contractors that the company employs on top of that.

Many think that’s way too many, given the downward growth at Yahoo over recent years and the need to shed non-performing businesses.

One way that previous leaders, including ousted CEO Scott Thompson and interim CEO Ross Levinsohn, had considered cutting staff in a major way was to outsource its advertising tech and search businesses.

But that does not seem to be Mayer’s plan — she’s indicated internally that she wants to invest in both, which will require more staff and lots of money.

Still, there are plenty of areas to aim at, including Yahoo’s outsized number of staffers in general and administrative areas, as well as a number of operating units that have little traction.

The strategy around how to right-size the company will fall to newly installed HR head Jackie Reses, who came to Yahoo with a background in private equity.

(I’ll be writing more about Reses and her unusual role at Yahoo soon — Mayer has also put her in charge of business and corporate development. But, suffice it to say, PE execs know a lot about cutting costs.)

As I said, I’d be surprised if Mayer sullies her presentation about the gleaming future of Yahoo today with the ugly realities of inevitable layoffs. But that does not mean that such choices will go away.

While we await Mayer’s plan to be handed down, let’s recap my recent series of posts on the future of Yahoo under Mayer, who has been on the job for two months now.

Here’s the highlights:

• Mayer is zeroing in on improving Yahoo’s search business and advertising platforms. Efforts include reworking Yahoo’s troubled search deal with Microsoft and possible ad tech acquisitions and also investments.
• Besides all the cultural changes she has made — free food! — Mayer is also, according to an internal memo I obtained, planning on holding the company to strict annual benchmarks of performance.
• She is also initiating a series of product changes, including a major redesign of the home page to make it more of a platform, as well as an email refresh. Mayer is also focusing in on 10 key verticals, such as the powerful Yahoo Finance, and is likely to address the importance of mobile for Yahoo.
• Lastly, she has sicced her top lawyer on leaks, even as she has instituted a policy of minimal interaction with the media. To be fair, there’s little to say about Yahoo right now, so it makes sense on some levels; on others, it’s hard to imagine the riveting story at a public company can avoid press scrutiny.

Whatev! Whatever Mayer does, we’ll do our best to get you even more deets of her strategic vision for Yahoo as it is unveiled.

(Photo courtesy of Yahoo’s Flickr.)

On Friday, I began a series about the various and sundry things new Yahoo CEO Marissa Mayer was up to at the Silicon Valley Internet giant.

First up was a look at how she is zeroing in on improving its troubled search efforts and advertising platforms, two business arenas that will get more focus this week when Mayer unveils her plans to the employees of Yahoo at an all-hands meeting.

According to an internal memo Mayer sent out Friday, the confab is scheduled for Tuesday. It comes after two days of meetings with Yahoo’s board of directors last week, in which Mayer outlined the plans for she has come up with to turnaround the company.

[Special note to readers: I would, as usual, embed the entire memo below, but Yahoo's top execs -- most especially, newly installed general counsel Ron "Leaks Are 'Uncool'" Bell -- have worked themselves into quite a lather over the issue of late. Apparently, according to numerous sources, the company is using all kinds of leak-catching tech tools -- free smartphones aren't as free as you might think, if you catch my drift, Yahoos, and I would also advise turning up the music loud when whispering in the Sunnyvale HQ offices -- so I will only quote internal emails only in part going forward to thwart such silliness.]

Pressing on!

In the memo, titled “Board slides, strategy and goals,” Mayer talked about the meetings. There will be two this Tuesday, one in the morning and one later in the day, in order to accommodate Yahoo staffers internationally.

“In an act of radical transparency that will be a tradition moving forward,” Mayer promised that she will go over the slides — which are usually not shared widely — of her “strategy and vision” that she presented at the board meeting on Friday.

“We want to offer you transparency into what happens at the board level as well as guidance as to where the company is going,” Mayer noted.

Kudos to that! (And send all that transparency my way, please!)

Mayer also said in the memo that she will have another all-hands meeting on October 1, where she will begin “rolling out a new system and process for goals for the company,” including annual goals that will be tracked and graded — first on a company level, then to departments, teams and, finally, individuals.

That’s a good idea, of course, because tracking such things has not been a focus of Yahoo for a while now. Not surprisingly, it is very much a practice at Google, from whence Mayer came and where she has been liberally borrowing a wide variety of management concepts.

But she has a few of her own tricks up her sleeve too, according to many sources, in terms of the strategy.

As I previously wrote, Mayer is planning on doubling down on search, as well as advertising platforms. Expect more money spent in both places, as well as a redo of Yahoo’s long-rocky search partnership with Microsoft.

Also up for a refresh is both email and also the critically important Yahoo home page. Both are being redesigned substantially to focus on consumer experience. People who have seen the mock-ups describe them both as more social and as more of a dashboard approach for users than the traditional catch-all portal.

It’s all based around learning technology that Yahoo has been working on called CORE, or Content Optimization and Relevance Engine. There will be lots of linking out and an attempt to make Yahoo more of a platform for others to develop on top of.

It’s a little Facebook-like, said several sources, but more focused on content and other products that differentiate Yahoo. Mayer has decided to back 10 key arenas, such as its powerful Yahoo Finance and Yahoo Sports sites, as well as its Flickr photo offering.

Still, no redesign is set in stone yet, so we’ll see what Mayer has decided on.

It’s also not clear what the e-commerce focus will be, but it is also an area that Mayer has a lot of experience in. Also a big question: What the heck is Yahoo’s non-existent mobile strategy going to be?

In addition, Mayer has already ordered the removal of some ads from both Yahoo’s email service and also its home page, cutting them back to improve the consumer experience. That’s a dicey move since Yahoo makes a big chunk of change from those ads, especially on the home page.

No matter. “Everything she is doing is about the consumer experience,” said a source. “Nothing else matters to her, even if it might matter to the bottom line.”

So far, Wall Street has been wary of Mayer until they see a strategy — the stock has been sitting in the $15 range since she arrived. That said, the high-profile exec does have more leeway from investors, and — perhaps most importantly — from the board.

In fact, at her now weekly Friday meeting for employees, a big group of the directors appeared onstage in a show of support.

A purple show, apparently — all were wearing lavender Yahoo t-shirts with “BoD” stamped on them.

Awwwwww! It’s like a mostly all-boy band! One, by the way, that might get more members soon. Sources told me that director Dan Loeb has been on the hunt to add at least one more person to the group, focusing on landing a Silicon Valley star.

When he was waging his proxy battle on Yahoo he tried to recruit both SurveyMonkey and former Yahoo David Goldberg and also well-known entrepreneur Max Levchin of PayPal and Slide.

While Goldberg joining the Yahoo board is not happening — he just joined the board of the Washington Post — getting Levchin to sign on seems more likely, especially with the focus on attracting innovative talent to the company.

Levchin is definitely that, as are many others Loeb has apparently been trying to buttonhole of late.

More on talent in our next episode.

Remember the infamous “Peanut Manifesto,” in which former Yahoo exec Brad Garlinghouse likened the company’s innovation process to peanut butter?

In it, he wrote:

“I’ve heard our strategy described as spreading peanut butter across the myriad opportunities that continue to evolve in the online world. The result: A thin layer of investment spread across everything we do and thus we focus on nothing in particular. I hate peanut butter. We all should.”

Not new Yahoo CEO Marissa Mayer, who has cooked up a new recipe for the longtime company albatross by sweetening it up.

Thus, yesterday, she sent out a new memo announcing a new sandwich topping to get the Silicon Valley Internet giant moving again: PB&J.

That stands for “Process, Bureaucracy & Jams,” and it is kind of like a city’s pothole alert line, except with more geeky pep.

Wrote Mayer and Patricia Moll Kriese — the ex-Googler who is now senior director of corporate projects at Yahoo — in a memo to employees, in part:

“Do you see a problem and know how to solve it? Want to brainstorm with colleagues about what to fix and how to fix it? Give us your ideas. Or be heard loud and clear by simply voting.”

In the missive, the pair also noted that besides the free food and new Friday FYI staff meetings, both of which I have previously reported on, the new leadership of Yahoo has been busy with some other stuff.

That apparently now includes: Turning off the turnstiles in building D at its Sunnyvale HQ, removing parking lot barriers, eliminating mandatory orientation at the gym.

(Yahoo really has been hopelessly bureaucratic, if it is requiring engineers to get schooled on how to work an exercise bike.)

In any case, it’s another interesting idea from Mayer to instill more ease and transparency to logistical aspects of running Yahoo (except when it comes to talking to media, of course — in that case, it’s awfully dark in here!).

These are important culture changes, of course, but the real rubber hitting the road will be what major execs Mayer brings in from elsewhere to really foment managerial change and innovation.

Sources say that at least one big hire is happening soon, with Mayer looking at candidates from “outside the box” from the regular suspects in the industry.

She has certainly been active in buttonholing important tech players on the subject over the last month, said sources, and asking for their input — from Facebook COO Sheryl Sandberg to former Yahoo CEO Terry Semel to a variety of others.

So far, her outside hires have been from Google, including Kriese (pictured here). While she had been listed as a project manager at Google, several sources said her last contracted job there was primarily to organize the annual trip to the World Economic Forum in Davos, Switzerland, for top execs at the search behemoth. Apparently, Kriese is a whiz with a spreadsheet in marshaling the tetchy potentates of Google, so PB&J seems right up her alley.

Here’s the full memo:

From: Marissa Mayer
Sent: Friday, August 24, 2012 10:00 PM
To: [All Yahoo]
Cc: Patricia Moll Kriese
Subject: Announcing PB&J — Process, Bureaucracy, & Jams!

YAHOO! PROPRIETARY AND CONFIDENTIAL INFORMATION — DO NOT FORWARD

Process blocking your success?

Bureaucracy getting you down?

Jammed by problems and see a solution? We are looking at how to streamline process, reduce bureaucracy, and remove jams — PB&J!

We’re launching PB&J today to gather your feedback on how to make Yahoo! the absolute best place to work. Share your ideas on what would make your job easier, boost your productivity and help solve problems.

What’s on your wish list for our corporate culture and work environment?

For example:

* GitHub for Code Review

* Dogfooding Yahoo! Mail & Calendar

* SSD’s (Solid State Drives) for faster machines

* Mi-Fi’s (mobile wi-fi cards)

We have done a few things already — free food, FYI, turning off the turnstiles in building D, removing parking lot barriers, eliminating mandatory orientation at the gym, etc. However, we know there’s more we can do!

Do you see a problem and know how to solve it? Want to brainstorm with colleagues about what to fix and how to fix it? Give us your ideas. Or be heard loud and clear by simply voting.

PB&J is available globally on Backyard: http://allhands.corp.yahoo.com/qna/pbj/latest

We will review your ideas and votes, reporting back in FYI each month on
actions taken. August PB&J starts now — and look forward to an update at
the next FYI in early September!

Questions/concerns/suggestions around PB&J, please contact Patricia Moll
Kriese, who’s our lead on PB&J.

Marissa & Patricia

And here is my fave depiction of PB&J, in the fantastically addictive “It’s Peanut Butter Jelly Time” dance:

It’s not well known, but last year, before it went public, Groupon almost didn’t.

With pressure from former board member Howard Schultz, and also doubts about timing expressed to CEO Andrew Mason by outside investors such as Silicon Valley luminaries Marc Andreessen and Mary Meeker, the Chicago-based daily deals site pressed forward, anyway.

Since then, it has been a tough ride for Groupon and, perhaps most of all, for Mason.

Yesterday afternoon, I got on Skype to do a video interview with him about the continued swirl — much of it very negative — around the company he co-founded and leads.

“I love Groupon,” he said. “Groupon is my life.”

Not so much everyone else these days — who are starting to compare the company to Web 1.0 flameout Webvan and even, in the ultimate digital insult, Pets.com.

That’s a false comparison — those were both never profitable, and had negative cash flow, unlike the much larger Groupon.

Still, Groupon’s stock has been under pressure pretty much since the time of its IPO last year, with critics hammering on everything from whether its business plan is fundamentally flawed to its controversial accounting to the goofy nature of Mason himself.

He even got dinged for drinking a beer at a Groupon all-hands employee meeting. (I’m fine with that one, by the way.)

Groupon shares hit a new low last week, after it reported second-quarter earnings that showed better profits, but a revenue miss. Growth prospects in its core coupon business, or lack thereof, was pointed to by Wall Street investors for the continued sell-off.

One bright spot was its nine-month-old Groupon Goods, which sells a variety of products and which has grown to $200 million in annualized revenue. But the lower-margin offering makes up a smaller part of the company’s overall results, as does its impressive improvements in mobile commerce.

These two positive developments have failed to impress, though, with the stock at even lower lows today — at $4.74 a share. That’s down 82 percent since Groupon went public, making the company worth $3 billion, or about half of what Google had once offered to buy it, and a little more than double its cash on hand.

In other words, it is crunch time for Mason, who must answer to shareholders, employees and his board, and must somehow get Groupon to a better place, and fast.

Among the myriad of risks for him as he does: Everything from new management to the sale of Groupon.

That is not in the cards right now, of course. And, as usual, the affable exec talks with confidence about the company.

To his credit, in this long interview, he is also pretty candid about the struggle.

It’s well worth a watch (except for me looking like I just got off a red-eye flight, which I did).

Here’s Mason:

]]> http://allthingsd.com/20120817/video-exclusive-heres-groupons-andrew-mason-talking-about-daily-deals-sites-stock-smack-future-plans-and-ipo-regrets-or-lack-thereof/feed/ 0 http://allthingsd.com/20120816/exclusive-yahoo-conducting-a-search-for-a-coo-as-no-2-to-mayer/ http://allthingsd.com/20120816/exclusive-yahoo-conducting-a-search-for-a-coo-as-no-2-to-mayer/#comments Thu, 16 Aug 2012 22:12:09 +0000 Kara Swisher http://allthingsd.com/?p=242414

According to several sources, Yahoo is now on the hunt for a COO — with special emphasis on someone with turnaround experience — presumably to be a worker-bee No. 2 to product-guru CEO Marissa Mayer.

Several Silicon Valley execs and others outside of tech have been contacted by Spencer Stuart, the executive talent firm that is working on a number of other exec searches for Yahoo.

It is not clear if Mayer is on board this plan for a COO and other sources said she has different ideas for the management organization at Yahoo, including an elaborate general manager system that is similar to that at Google. Mayer, who come to Yahoo from the search giant, has put a lot of practices from her former employer in place, from free food to weekly all-hands meetings to more stringent hiring.

In any case, those candidates contacted recently have been told that the company is looking for a top exec with a focus on restructuring and also finance. Presumably, in this scenario, Mayer will focus on product and innovation — her strengths — while the COO would perhaps be responsible for making the trains run on time on the business side of Yahoo. A plethora of employees who have met with her have stressed her intense interest in products, which is mirrored by much less attention to more mundane business issues.

Perhaps the highest profile COO hire of a similar sort has been Facebook’s Sheryl Sandberg, who was brought in at a dicey time for the social networking site to work on the business while co-founder and CEO Mark Zuckerberg focused on its product.

Such an exec could be a good idea, since — despite the wide latitude Mayer has been given to make changes — Yahoo can not afford much damage to its current operations as Wall Street investors wait for her strategy to reinvigorate the company.

In fact, a recent filing in which Yahoo said Mayer was rethinking its promise to return a $4 billion-plus cash windfall from the sales of assets in China to shareholders caused the stock to drop quickly, largely due to a decided lack of information about what she planned to do with the money.

It will be interesting to see who would be intrigued by the mammoth job of helping fix Yahoo, since most think the process will inevitably include major layoffs.

Spencer Stuart’s Jim Citrin worked on the troubled tech giant’s recent CEO search, which ended up in the hiring of the high-profile Google exec. Mayer’s hiring was a public relations coup for Yahoo’s board, especially its large shareholder Dan Loeb of Third Point.

Mayer herself has also been reaching out to her extensive circle of colleagues at Google and elsewhere in tech to come help her turn around Yahoo. Most recently, she has been trying to hire a former Googler Katie Jacobs Stanton, who once worked with Mayer and now runs international efforts for Twitter.

At the same time, several top execs have left Yahoo since Mayer arrived as she conducts a house cleaning and puts her own team into place. That has included its former interim CEO Ross Levinsohn and HR head David Windley. More such departures are expected.

Mayer has also kept execs, including making interim general counsel Ron Bell the permanent one last week. She has also relied heavily on Yahoo co-founder David Filo.

But her new hires have mostly been lower-level ones, made up of staff who had been close to her at Google.

I would ask for comment from Yahoo, but one of those Mayer newbies at Yahoo — Anne Espiritu, who appears to be a ghost — is still sitting on a number of my and other reporter’s requests to comment on various issues that have been completely unanswered. I have now decided to move onto the other two — Patricia Moll Kriese and Andrew Schulte — to see if they disappear too.

]]> http://allthingsd.com/20120816/exclusive-yahoo-conducting-a-search-for-a-coo-as-no-2-to-mayer/feed/ 0 http://allthingsd.com/20120813/not-all-yahoos-headed-out-door-mayer-makes-filo-a-direct-report-and-bell-permanent-gc/ http://allthingsd.com/20120813/not-all-yahoos-headed-out-door-mayer-makes-filo-a-direct-report-and-bell-permanent-gc/#comments Mon, 13 Aug 2012 12:52:56 +0000 Kara Swisher http://allthingsd.com/?p=240520 While new Yahoo CEO Marissa Mayer has ushered some longtime employees out the door of late — most recently, HR head David Windley last week, with more to come — that does not mean she is not keeping some longtime Yahoos around.

At the the Silicon Valley Internet giant’s weekly Friday FYI staff meeting, Mayer told the crowd that Yahoo co-founder David Filo (pictured here) would be reporting directly to her — which I previously suggested would happen — and also that longtime legal exec Ron Bell would become permanent general counsel.

Filo has been an important part of Mayer’s arrival at Yahoo, and was a critical ally in her first days, emerging as a vocal supporter of her appointment from the start.

The typically retiring and taciturn product guru actually gave a quote in a press release, and did interviews when Mayer was hired.

Moving Filo close to her is an important morale booster, because while the founders of Yahoo have their definite ups and downs, as I have previously noted, the heart of the company is still with both Filo and also co-founder Jerry Yang.

Interestingly, he’s actually been reporting for years to a variety of product and tech execs, despite owning more than 6 percent of Yahoo.

The elevation of Bell (pictured here), who was No. 2 to former GC Mike Callahan, is an interesting move. Having been at Yahoo since 1999, after working at Apple, the veteran lawyer played an important role in waging the Facebook patent litigation.

He was named interim GC after Callahan left in late June, by then-interim CEO Ross Levinsohn.

Levinsohn left at the end of July.

We’ll see who else will leave Yahoo this week and next — the fates of a wide range of top execs are in the mix, from CFO Tim Morse to media head Mickie Rosen to sales chief Michael Barrett.

Mayer has been trying to recruit her former Google staffer Katie Jacobs Stanton from Twitter for a big media job. And she has reportedly been making strong efforts to get Barrett — another former advertising exec at the search giant — to stay.

We’ll see about it all soon enough, and also what will happen to Yahoo shares this week.

The stock got pummeled last week, down more than 5 percent on Friday to close at $15.15, after the company revealed in a regulatory filing that there might be a change of plans for the more than $4 billion from the sale of its Alibaba Group stake.

Both Yahoo and one of its biggest shareholders and a director, Dan Loeb of Third Point, had previously said the money would likely be used for a stock buyback, or even a dividend.

Even though Loeb let it leak that he was A-okay with it all, to assuage other angry investors, Mayer will now need to come up with a solid plan for the dough, which could include some acquisitions.

And it might help if she could also perhaps finally land the long-troubled deal to get many more billions from its stake in Yahoo Japan.

While those negotiations have had their ups and downs, it was close to being struck in the summer. But sources said there are still apparently valuation differences.

(I would add comment or no comment from Yahoo, as I do with every other company I cover. But after numerous emails, I am still waiting to hear back from the company’s PR spokeswoman, whom I am sure has just been super busy.)

]]> http://allthingsd.com/20120813/not-all-yahoos-headed-out-door-mayer-makes-filo-a-direct-report-and-bell-permanent-gc/feed/ 0 http://allthingsd.com/20120807/mayer-will-extend-free-food-to-nyc-too-while-what-is-yahoo-question-is-hereby-banishd/ http://allthingsd.com/20120807/mayer-will-extend-free-food-to-nyc-too-while-what-is-yahoo-question-is-hereby-banishd/#comments Tue, 07 Aug 2012 22:22:54 +0000 Kara Swisher http://allthingsd.com/?p=238754

New Yahoo CEO Marissa Mayer descended on two of its New York offices today, declaring that she would summarily be granting free food to all there as she had recently done to much acclaim at its Silicon Valley HQ.

After firmly establishing herself as the munificent provider of free Odwalla juices for all, the former Google exec plunged into much more serious topics with the group of Manhattan-based employees. The New York staff is mostly focused on advertising — Yahoo’s most important business.

A number of Yahoo senior execs, as well as its several hundred others, were there to hear Mayer for the first time since she got the job about a month ago in a surprise and very high-profile hire, beating out media-focused candidate Ross Levinsohn.

In any case, Mayer seemed to be talking the language of the crowd, noting that Yahoo was an advertising company first and foremost.

A key area of focus is obviously display, she noted, as well as improving its ad network efforts. Mayer also told those gathered that the mobile strategy for Yahoo has moved around way too much, which is a nice way of saying there has been pretty much no direction under past CEOs.

Indeed, mobile efforts have been a longtime weakness of Yahoo.

Mostly, though, it was the same kind of things the energetic former Google exec has been saying to the Yahoos at its Sunnyvale HQ: Faster decisions, more accountability for top execs, hipper culture, all-hands meetings, question-rich involvement for employees.

In other words, in a performance coming soon to a Broadway theater: Google Clone — The Yahoo Edition.

One notable new aside Mayer made, several sources noted, was that she was not going to be answering the perennial query that has tripped up its leaders for years now: What is Yahoo?

She apparently does not like this line of inquiry one little bit and told the crowd it was not the right way to look at the long-troubled company or how to define it.

Now I am intrigued, since she is essentially correct in the concept that Yahoo is about what it does well more than anything else.

Not being able to execute has been a long-time issue for Yahoo, which has stumbled from one thing to the next in a much less disciplined manner than all of its competitors.

That said, every one of them still clearly communicates a basic core promise via strong execution, even as each has added on new businesses, for example:

Google = fab search, Amazon = top-notch retail, Apple = elegant devices, Microsoft = dominant Windows, Facebook = best social networking.

Yahoo — which ousted CEO Scott Thompson dubbed a technology-enabled media company (and he was right on that score) — has, of course, been about too many things, from a directory to an advertising service to a content provider and distributor.

Mucking up the works, though, have been a thousand other lesser efforts not done well and most of which have petered out.

In any case, the simple question of what Yahoo is has been banish’d for now, and Mayer will presumably not be answering that nettlesome query, even if it bubbles up on her nifty new interactive employee Q&A system.

But, if you really want to know, I can tell you exactly what it is at this moment in time and going forward: Yahoo is whatever Marissa Mayer says it will be.

More to come on exactly what that means.

Until then, here is my favorite quote from Shakespeare’s “Romeo and Juliet” about being banish’d:

Hence-banished is banish’d from the world, And world’s exile is death: then banished, Is death mis-term’d: calling death banishment, Thou cutt’st my head off with a golden axe, And smilest upon the stroke that murders me.

]]> http://allthingsd.com/20120807/mayer-will-extend-free-food-to-nyc-too-while-what-is-yahoo-question-is-hereby-banishd/feed/ 0 http://allthingsd.com/20120806/yahoo-gets-googley-qa-tool-at-friday-fyi-and-uses-it-to-ask-about-exec-accountability-and-leaks/ http://allthingsd.com/20120806/yahoo-gets-googley-qa-tool-at-friday-fyi-and-uses-it-to-ask-about-exec-accountability-and-leaks/#comments Mon, 06 Aug 2012 12:55:34 +0000 Kara Swisher http://allthingsd.com/?p=238089

Well, it wasn’t as tasty as free food this week at Yahoo, but in her second official all-hands meeting with employees — now reportedly called “Friday FYI” — new CEO Marissa Mayer rolled out another new Google-inspired Q&A tool to get the company talking about what matters.

The system allows anyone at the Silicon Valley Internet giant to post questions, ideas or suggestions on a variety of topics, which can then be voted up and down.

Actually, it’s been in use internally at — you guessed it — Google for some time, and is even available to the general public in a product called Google Moderator. Mayer has been importing a lot of corporate practices from the search giant where she worked for her entire career — from free food to better swag to these weekly confabs to, now, its method of hearing from the staff.

While Yahoo previously used its Messenger product to garner questions for its less-regular all-hands meetings, this is apparently a new interactive tool built by the company’s engineers (and not using Google’s free APIs, as far as I can tell).

It seems to be working fine, and there were a number of questions that bubbled up.

That included one about Mayer’s thoughts on her current executive team — which is still largely inherited from a series of previous administrations, despite some departures recently — and also how her regime will hold them accountable.

Algorithmic accountability among Yahoo execs? Things have changed!

Even better, declared the questioner of that particular query, to whoops from the audience: “I want an honest answer!”

But Mayer was diplomatic, only saying she was “pleasantly surprised” by the top execs. She also noted that the management would have quarterly goals that are transparent to the whole company. (I won’t say they do that at Google, but — ahem — they do that at Google.)

Mayer went through a number of questions in a precise and cut-the-mustard manner that employees seem to be enjoying, overall.

One very voted-up question was about leaks to the media, in particular to this Web site, and whether a board mole hunt has been successful (obviously not). Also, of course, what she was going to do about the situation.

Apparently, Mayer said she won’t be tracking down leakers, and that this new openness will solve the problem.

Good idea, but all that lovely transparency also needs some pretty good products if it’s going to work.

And product focus most definitely appears to be the path now. Mayer also showed off the new Yahoo Mail — which has been under revamp for a while, and was started under former Chief Product Officer Blake Irving — with some good response from Yahoos (last week, it was a look-see at its recent iteration of its IntoNow video offering).

There are other interface changes that have been in the works too, likely under the direction of Tim Parsey, Yahoo’s head designer, who also came on under Irving.

In fact, a lot of what Irving had pushed, including keeping advertising technology in-house and also maintaining control of key monetization engines, is the likeliest path going forward. The ad tech outsourcing deals, pushed by the interim CEO and his strategy head Jim Heckman, are apparently gone (and so are Levinsohn and now Heckman).

Also of interest to many at the company is the increased involvement of co-founder David Filo, who has become much less quiet under Mayer. I’d expect him to report directly to her — he’s actually been reporting for years to a variety of product and tech execs, despite owning more than six percent of Yahoo.

Thus, here’s my question for the new Q&A system for next week: So, when’s Jerry Yang showing back up?

]]> http://allthingsd.com/20120806/yahoo-gets-googley-qa-tool-at-friday-fyi-and-uses-it-to-ask-about-exec-accountability-and-leaks/feed/ 0 http://allthingsd.com/20120802/revolving-door-yahoo-departures-begin-even-as-mayers-team-still-tbd/ http://allthingsd.com/20120802/revolving-door-yahoo-departures-begin-even-as-mayers-team-still-tbd/#comments Fri, 03 Aug 2012 00:09:55 +0000 Kara Swisher http://allthingsd.com/?p=237298

After former interim CEO Ross Levinsohn departed Yahoo earlier this week, I noted that it was only a matter of time before more execs headed out the door with the changeover to new leader and former Googler Marissa Mayer.

So it is written, so it shall be done, it seems, with two significant departures from the company this week — with one tech exec going to Apple and another product exec headed to an interesting new online education initiative.

According to several sources, Adam Bechtel — who has been the VP of infrastructure at Yahoo — will be leaving for an unspecified job at Apple.

At Yahoo, Bechtel was essentially the No. 2 exec under tech, platform and ops head David Dibble, and had purview over its data centers, network, systems, storage and edge technologies. He joined Yahoo almost a decade ago, via its acquisition of Inktomi.

Also out the Yahoo door is Jonathan Katzman, a product ace who was part of the social efforts across Yahoo, led by Mike Kerns. He was on the Kerns team that drove its most notably successful product in a while, Social Bar, which has become one of the most popular apps for sharing on Facebook.

Katzman came to Yahoo after its acquired Xoopit — an email-focused sharing product — in 2009. He’s headed to be chief product officer at the Minerva Project, which is attempting to build the next top-tier university online.

There have been many other departures of less-well-known execs at Yahoo, several sources said, mostly due to fatigue over the number of management changes at the company. Most recently, that includes sales exec Marc Grabowski, who left without other plans.

“It’s not Mayer’s fault, but some of us are just done,” said one person who is leaving. “A lot of us just can’t take another restructuring.”

That said, a large number of others who had been contemplating leaving Yahoo are now in a wait-and-see mode regarding what their new CEO will do and who she will pick to help her turn it around.

Among current top execs, that has prompted who-will-stay-and-who-will-go guessing games internally, with Mayer grilling staff up and down the organization to get a better lay of the rocky land.

Perhaps the most insecure in their status are the top employees on the media and sales side of Yahoo, who were aligned with Levinsohn and his vision of the company as a content-centric business. Those to watch include strategy exec Jim Heckman, sales head Michael Barrett, and media head Mickie Rosen, among others.

Also, intriguingly still in the mix: Former Americas ad sales head Rich Riley, who is apparently still with the company, despite a June declaration to move on after some months. (Things change fast at Yahoo!)

On the tech and product side, it will be interesting to see if Mayer will promote from within its ranks — such as elevating Shashi Seth, SVP of Yahoo’s connections business. Other execs who could move in this arena are Dibble, and also Mark Morrissey, who now works for Dibble as head of engineering operations.

Of course, there are the other parts of Yahoo that Mayer also now has responsibility for, such as legal, marketing, finance and HR. The execs to monitor there include CFO Tim Morse, HR head David Windley, and marketing chief Mollie Spilman.

Longtime Yahoo legal head Mike Callahan left the company before Mayer’s arrival, so that job has been given to Ron Bell — Hi there, Ron, be nice! — on an interim basis. But look for movement there too.

Much speculation is also centering on what tech stars Mayer might bring in from Google or from elsewhere, including via acquisition.

She’ll need a lot of firepower, of course, to turn the company around, and has told various execs that she expects to make a lot of talent hires to get Yahoo back to producing at more innovative levels.

As I reported earlier today, she has got one already — former Google PR exec Anne Espiritu is now moving over to corporate communications at Yahoo. At the same time, Mayer abruptly let Yahoo’s most recent PR spokeswoman, Dana Lengeek, go.

Expect Mayer to continue to pull from Google, which is chock-full of talent and where she had a coterie of favorites, some of whom are there and some of whom have moved on. Those mentioned as possible hires still at Google include shopping exec Samir Samat and social-networking-famous (and fantastic) Orkut Büyükkökten.

But many of Mayer’s close colleagues have left Google already and are ensconced in important jobs, including: Dylan Casey, who is now director of product management at Path; PR exec Gabe Stricker, who runs communications for Twitter; Craig Silverstein, now at the Khan Academy; and Ben Ling, who is currently COO of the Badoo “meeting network.”

Mayer also reportedly holds former Googler, FriendFeeder and Facebooker Bret Taylor in very high regard. But the entrepreneur — exactly the kind of tech powerhouse she needs to bring into Yahoo and soon — is now in the midst of creating a new start-up.

When I pinged Taylor today about whether he’d consider taking up a challenge such as Yahoo, he texted back:

“No, definitely still starting my own company, despite the fact that I am a big fan of Marissa.”

It’s a nice compliment, and Mayer’s got a lot of people rooting for her, of course — the real trick will be to turn some of the strongest ones into Yahoos.

]]> http://allthingsd.com/20120802/revolving-door-yahoo-departures-begin-even-as-mayers-team-still-tbd/feed/ 0 http://allthingsd.com/20120719/big-big-bucks-yahoo-set-to-release-what-it-paid-to-hire-marissa-mayer/ http://allthingsd.com/20120719/big-big-bucks-yahoo-set-to-release-what-it-paid-to-hire-marissa-mayer/#comments Thu, 19 Jul 2012 19:16:08 +0000 Kara Swisher http://allthingsd.com/?p=232013

Later today, Yahoo will release what is likely to be a very juicy regulatory filing about what it paid to get former Google exec Marissa Mayer to become CEO.

While I could not obtain the exact numbers — the compensation plan is being protected like the crown jewels of England — a source on the board of the Silicon Valley Internet giant said it is “big, big bucks.”

So big, apparently, that the discussion over the money — which is a combination of cash and stock — was hotly debated by the directors as to whether the high-profile exec was worth the large amount.

While Mayer is considered a highly competent tech exec, a very strong decision-maker, adept at product innovation, some of the board raised concerns about her, too. One issue: She had been passed over by Google CEO Larry Page for one of the major unit jobs in his reorganization of the company, while others in her peer group had been promoted.

That said, others argued that Mayer was just the kind of disruptive agent of change that Yahoo needs, especially because she could inspire its engineers and also attract much needed talent.

Also of importance, a vision she presented to the board of doubling down on Yahoo’s once mighty advertising technology and search businesses.

In a rapid-fire series of meetings with small groups of Yahoo staffers this week, Mayer has grilled the employees on a range of issues in what everyone I spoke to described as a no-nonsense and cut-to-the-point manner.

“She is incredibly smart and has already shaken up the thinking by calling people out,” said one person who has attended the meetings. “But she has also not suffered fools.”

One refrain she made in a number of the gatherings was that Yahoo needed more technical staff.

“We need more engineers,” said she said to several groups.

Such talk has been greeted with glee by the product side of Yahoo, which has long felt that they have been neglected.

“The geeks could not be more thrilled she is here,” one Yahoo employee said.

We’ll soon see how much that glee is going to cost.

Please see this disclosure related to me and Google.

]]> http://allthingsd.com/20120719/big-big-bucks-yahoo-set-to-release-what-it-paid-to-hire-marissa-mayer/feed/ 0 http://allthingsd.com/20120706/exclusive-yahoo-and-facebook-strike-patent-peace-deal-expand-ad-and-content-partnership/ http://allthingsd.com/20120706/exclusive-yahoo-and-facebook-strike-patent-peace-deal-expand-ad-and-content-partnership/#comments Fri, 06 Jul 2012 16:07:06 +0000 Kara Swisher http://allthingsd.com/?p=227773

Executives at Yahoo and Facebook have completed an extensive strategic deal, as part of a final settlement of their contentious patent infringement lawsuit and countersuit.

According to sources close to the situation, the agreement will include a major expansion of their ongoing partnership, including a joint advertising sales effort, as well as cross-licensing of some key patents between the pair.

The deal has gotten approval from the companies’ boards — in fact, Yahoo’s directors agreed to it this morning in a telephonic meeting. It will be announced sometime later today.

No actual cash payment will change hands under terms of the deal over the patents, in contrast to the $550 million that Facebook paid Microsoft recently in another transaction related to AOL patents.

But sources said Facebook and Yahoo hope there will be significant upside in several possible advertising and other business deals between the pair that could yield large revenues if executed well.

In addition, there is a possibility that Facebook could later pay to license other Yahoo patents not included in this deal.

Discussions to settle the lawsuits — negotiated by Yahoo interim CEO Ross Levinsohn and Facebook COO Sheryl Sandberg, among others — began almost as soon as Yahoo’s board ousted former CEO Scott Thompson, which I reported on in early June and Yahoo officially confirmed several weeks later in a regulatory filing.

The lawsuit was initially waged by Thompson, who reportedly promised directors that a big financial payoff of many billions of dollars could result from the patent lawsuits against Facebook.

At the time, despite strong support by its legal execs, many other Yahoo managers — including those who had crafted an earlier and successful content- and data-sharing agreement with Facebook — were blindsided by the aggressive move by Thompson. That included Levinsohn — who was then in charge of its global media unit — and other top execs.

So, after Thompson was gone and with board support, Levinsohn immediately reached out to Sandberg. In addition, Yahoo’s point person on the deal, VP of strategy James Heckman, met with a number of top Facebook execs including: Dan Rose, VP of business development and monetization; VP of global marketing solutions Carolyn Everson; and business development director Chris Daniels.

Such an outreach was a major shift for Yahoo, but was possible due to a newly configured board in the wake of the Thompson departure.

Still, some directors who had pushed for the initial lawsuit that Yahoo unexpectedly lobbed against the social networking powerhouse in March have remained on the board and agreed to the latest settlement.

The reason for the change of heart? While many still felt Yahoo had a strong case, backed by important intellectual property in a range of key digital arenas, Facebook was prepping for a long and expensive battle by girding its patent defenses.

Thus, the possible end of the rancorous legal battle should be greeted with enthusiasm by Wall Street investors, as well as many detractors of Yahoo’s legal action across the tech landscape.

And, indeed, the company’s reputation definitely suffered as a result of the lawsuit, with many techies, both inside and outside the company, decrying Yahoo’s lawsuit.

Many of those engineers, as well as entrepreneurs — key constituencies for Yahoo’s revival — firmly believe a patent portfolio should only be used defensively.

Now, if the deal is approved, the move will have been turned a decidedly negative situation into a potentially stronger partnership.

Among the most notable parts of the deal is an arrangement to jointly sell big events and other packages to advertisers.

In addition, as it has in content, Facebook will allow Yahoo to be the first partner to feature information about its users’ “Likes” in actual display advertising on Yahoo.

Extending and adding to such contact-sharing was apparently one bone of contention in the talks to settle the lawsuits, although there had already been an element of that in a previous partnership between the pair. Yahoo is one of the few Facebook partners with access to information from its social graph; Facebook, in turn, gets user contact data from Yahoo.

Of course, how well the pair works together to deliver better experiences for its consumers and marketing for its advertisers remains to be seen.

But it’s clear that any rocky road in cooperation is much better than the legal quagmire both had been stuck in.

One thing is likely — the successful end to the tensions ups Levinsohn’s chances of getting the permanent CEO job. Directors have not given him the nod as yet, with another candidate — Hulu CEO Jason Kilar — as Levinsohn’s leading rival for the job, as I first reported yesterday.

]]> http://allthingsd.com/20120706/exclusive-yahoo-and-facebook-strike-patent-peace-deal-expand-ad-and-content-partnership/feed/ 0 http://allthingsd.com/20120705/yahoo-ceo-search-in-final-stages-with-levinsohn-and-kilar-in-lead/ http://allthingsd.com/20120705/yahoo-ceo-search-in-final-stages-with-levinsohn-and-kilar-in-lead/#comments Thu, 05 Jul 2012 20:31:05 +0000 Kara Swisher http://allthingsd.com/?p=227667

Image via .shock

According to sources close to the situation, the search for a new CEO for Yahoo is closing in on key candidates.

But, said sources, it appears to be coming down to a contest between interim Yahoo CEO Ross Levinsohn and Hulu CEO Jason Kilar.

“It’s pretty much a choice between picking a media exec or a product exec,” said one person, referring to Kilar and Levinsohn respectively, about leading the troubled Silicon Valley Internet giant. “It’s about defining what Yahoo is going to be.”

Jim Citrin of Spencer Stuart is conducting the search.

At this point, said sources, it appears to still be a situation that is Levinsohn’s to lose. Along with having been at Yahoo for several years, the media-savvy exec has also recently scored points with the hiring of a new and very well-regarded sales chief, Michael Barrett.

In addition, some Yahoo board members feel that adding yet another new CEO into the mix from outside could further destabilize a company that has gone through the leadership wringer over the last year.

That has included the ousting of two CEOs since last fall — Carol Bartz and Scott Thompson — in less than ideal circumstances that has called into question the competence of its board.

Actually, more precisely, its incompetence.

The newly formed board of Yahoo — most of the directors responsible for recent snafus have departed — is now very wary of making another such mistake, which is apparently why it did not name Levinsohn immediately.

“This has to be seen as a process that really is not slapdash,” said another source. “Yahoo can’t afford to make another mistake.”

No, it cannot.

But in keeping Levinsohn hanging, some inside the company feel the board is doing just that.

“The employees at Yahoo cannot take yet another all-hands meeting where we meet another CEO and hear another new vision for the company,” said one longtime staffer. “It’s hard to imagine that again without becoming nauseous.”

Still, Kilar is a favorite choice of some Yahoo board members; he is now out-of-contract with Hulu and is reportedly in the middle of negotiating his exit there.

“Jason is a free agent,” said a source close to the situation at the premium video service, which includes News Corp. (which owns this Web site) and Disney, as well as Comcast. “And he is looking for this next thing.”

He should, since tensions between Kilar and his major media partners/owners remain high and his departure seems imminent.

Whether taking on the huge task of fixing what ails Yahoo is that is unclear; some expect Kilar to favor moving on to a start-up.

One other issue: Neither Levinsohn nor Kilar has ever run a public company, although both have worked for them.

Other candidates Yahoo has spoken to are part of a list it has gone to several times before.

They include News Corp. digital exec — and longtime Levinsohn friend and business partner — Jon Miller, who has definitively declined to be considered due to his relationship with Levinsohn; former Yahoo exec Dan Rosensweig, who is now CEO of Chegg and who has declined several overtures; and former aQuantive CEO Brian McAndrews, whom sources said is also not interested in the job.

Other possible execs — none of whom appear to have bitten the Yahoo line either — include former Microsoft CFO Chris Liddell and former DoubleClick CEO David Rosenblatt.

There appear to be no women candidates among those in the talent search. (What a shockeroo!)

It will be interesting to see if the usually lugubrious Yahoo board will act before the annual meeting, which is in one week. The choice certainly cannot drag on, though.

“Yahoo needs to move forward with someone,” said another source.

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