This week in Las Vegas, the new management team running Yahoo — including CEO Marissa Mayer — is at International CES to schmooze with big advertisers and convince them that Yahoo is the place to put large chunks of their marketing budgets.

One of the longtime selling points of the company is the sheer size of its audience, especially for the key money-making parts of the site — the homepage, Yahoo Mail and search.

But private stats from comScore show that those three areas have continued their longtime decline over the last year, in some cases dropping significantly. In November and December, for example, compared to the same two months a year ago, U.S. search was down 28 percent and 24 percent respectively, while mail was down 16 percent and 12 percent.

This matters a great deal, since the troika of homepage, mail and search have been the critical driver of the Yahoo value ecosystem for advertisers.

The impact of those drops is felt all over Yahoo, whose music, movie, games and travel site have also seen massive drop-offs in traffic year over year in those same months.

Stopping the decline is critical for Yahoo, since Mayer herself has underscored the need for size in her pushing for new businesses at Yahoo that are 100 million users in size and/or have revenue prospects of at least $100 million.

While this is a lofty vision, the reality of traffic falloffs on key properties is a vexing issue, especially since they remain its main source of revenue and also an important element in launching future products Mayer is promising will turbocharge the company.

It’s not that Yahoo is not huge, especially compared to most sites on the Web.

As one of the top Internet brands, according to a recent Nielsen report, the average number of total monthly unique visitors for the longtime Silicon Valley Internet company in 2012 was 141.6 million, No. 3 behind Google and Facebook in the U.S. market. Similar rankings were reported by comScore, which placed Yahoo at the No. 2 spot after Google, with 171.4 million monthly visitors in November.

But, for many years, traffic to those important consumer destinations of Yahoo has been on a clear and unstopping decline, statistics (usually from comScore) that the company nonetheless always dutifully puts in its earnings slides — see below — for investors to get some idea of the major and vexing issues facing the company.

That was suddenly ended in the last quarter with the engagement slide removed from Yahoo’s public deck entirely. Not all companies include such stats, so when I inquired as to why the company had made the change, Yahoo PR never returned my phone call.

But it’s not hard to guess the reason for the shift — the numbers were not good and they called more attention to Yahoo’s glaring challenge, which is getting users reengaged with its products by creating what Mayer has dubbed several times “delightful” experiences.

According to numerous sources, that has also been the case within the company too, with the new regime restricting an internal transparency initiative pushed by former Chief Product Officer Blake Irving that shared product performance numbers with the top 100 leaders at Yahoo.

And while it’s an interesting strategic choice, several sources inside the company this week urged me to get ahold of increasingly worrisome numbers from comScore — available to its private clients — comparing November 2011 to November 2012 and also December 2011 to December 2012 at home and work in the U.S.

So I did, getting the same stats from numerous sources — numbers that a spokesman for comScore confirmed were correct.

And, as promised, they are worrisome indeed.

In November 2012, compared to November 2011, the monthly unique visitors to the homepage declined 17 percent to 91.8 million from 110.9 million; Yahoo Mail dropped 16 percent (from 92 million to 77.7 million); and Yahoo search dropped 28 percent (from 93.3 million to 66.9 million).

Also off significantly for all three areas, often by one-third, were a plethora of other stats: Percentage of reach, total minutes, total page views, total visits and more.

One of the only bright spots for Yahoo was the relatively small Flickr sites, which were up 37 percent — 26.7 million versus 19.4 million — in unique monthly visitors year over year. The photo-sharing site — which has been getting a much-needed refresh — was also up in all other stats.

But Flickr — which Mayer (pictured here) has laudably touted and supported after years of inexplicable neglect — is not a money-maker for Yahoo, even if its return does burnish the company’s tech and innovation cred.

In December 2011 to December 2012, the homepage was more stable, gaining four percent in monthly uniques from 109.4 million to 114.2 million, but with other key stats both rising and falling. Total visits were up 14 percent, for example, while average minutes per visit was down 13.6 percent.

But the trouble for mail or search continued, off 12 percent (89.9 million to 78.7 million) and 24 percent (88.7 million to 67.4 million) respectively in monthly uniques, with similarly major declines in all other stats.

Mail recently got a refresh too under Mayer, despite some recent security glitches, so new stats will show if that will help stem the declines. Search is another story all together, with Yahoo in what can only be described as a dysfunctional partnership with Microsoft that numerous sources tell me Mayer is seeking to end.

The homepage, too, is undergoing a redo, with a design that has a decidedly more mobile and social feel, and pushing an ethos of Yahoo becoming a hub for content discovery. It is hoped the new look will boost traffic relatively quickly from its current downward trajectory.

To be fair, there can be lots and lots of reasons for these declines, although most of Yahoo’s competitors are, at worse, seeing a flattening of growth and not outright declines.

And sometimes Internet sites complain that services like comScore undercount, although Yahoo had previously used the firm in its public documents. More to the point, as multiple sources within the company note, the stats are directionally correct in that they closely track with internal Yahoo numbers.

Which is to say, traffic is going down rather than growing. That is clearly why Mayer has loudly stressed mobile since arriving at Yahoo, an area not included in these numbers that many sources said has strong growth to about 70 million monthly unique visitors via its apps and mobile-enabled Web offerings.

But unlike the homepage, mail and search — which push and pull traffic all over Yahoo and are responsible for most of its current monetization — mobile also makes very little money now. And Yahoo — unlike Facebook, which recently did — does not break out mobile results.

So, it will be interesting to see if the company does so when it reports fourth-quarter earnings on January 28 and also if it says anything about continued traffic declines of its traditional Web business in the period and the impact on revenue.

Still, there are lots of ways to counter declining or flat revenues, even with declining traffic — via cost cuts, efficiencies, charging more and selling assets (as Yahoo did in the last quarter). And Yahoo has ably managed to keep its operating margins growing over the years, despite both the declines in traffic and moribund growth in its revenue.

But the real and only fix is the drastic fix to existing tentpoles Yahoo has and the creation or acquisition of products that excite consumers and, therefore, advertisers.

It’s not an easy thing, of course, as well-known venture capitalist Ben Horowitz recently wrote in his blog about the need to focus on products over building and improving culture — one of Mayer’s other big initiatives at Yahoo.

Wrote Horowitz in what I consider one of the clearest articulations of what it takes to win for startups, as well as big companies like Yahoo:

“The primary thing that any technology startup must do is build a product that’s at least 10 times better at doing something than the current prevailing way of doing that thing. Two or three times better will not be good enough to get people to switch to the new thing fast enough or in large enough volume to matter. The second thing that any technology startup must do is to take the market. If it’s possible to do something 10X better, it’s also possible that you won’t be the only company to figure that out. Therefore, you must take the market before somebody else does.”

If you want to take a gander, here are some more of those old Yahoo quarterly engagement slides, which were recently eliminated from its presentations:

(Note: I reached out to Yahoo’s outside PR firm — since they do respond to queries — and also some company execs to get a comment on this story, but so far there has been none.)

As I had previously reported, Yahoo’s key business unit — its advertising sales force — is now getting details of a reorganization by its new leader, COO Henrique De Castro.

In making the changes, just weeks ahead of Yahoo’s annual sales conference in Las Vegas on Jan. 21, De Castro is borrowing rather heavily from the set-up of the powerful ad business at Google, from whence he came.

By shifting the sales organization to a “category” model, sales reps at the Silicon Valley Internet giant will sell all of Yahoo’s ad products, as well as its search offerings, across channels in a vertical process organized around advertiser segments, such as automotive, entertainment and packaged goods.

Yahoo has long sold its advertising in a regional and tiered organization against premium and performance inventory in display and search, designed to avoid vertical conflict. Thus, the sales staff have built up advertiser relationships across many areas, which will not work in the new system.

Sources inside the company said regional leaders will now be shifted to running various verticals. There will be support specialists for those areas, too.

Mark Ellis, who was most recently VP of North American sales and global partnerships, will pay a key role in the new org, said sources. It is not clear, though, what role Peter Foster, who has headed audience advertising, will play. Another high-ranking exec, Keith Kaplan, has apparently been shifted to focus on agency relationships.

As I had previously written, there are many different ways to organize sales, but making such 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.

According to numerous sources inside Yahoo, the changes are causing some measure of worry and confusion across the salesforce at the company, since it comes after a lot of wrenching changes over the last year.

That includes the departure of well-regarded Chief Revenue Officer Michael Barrett in mid-October, after De Castro got the COO job. He 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 its sales organization.

He will likely have a more high-profile next week at the International CES, the huge annual consumer electronics show taking place in Las Vegas, along with new Yahoo CEO Marissa Mayer, who was a top product exec at Google. The pair is planning on meeting with major ad clients while there, which is their first significant outreach to marketers since taking their new roles at Yahoo.

De Castro had outlined the new ad reorg plan immediately after a multiday offsite with top sales leaders several weeks ago, and said the changes would come at the very beginning of 2013.

The ad staff at Yahoo begin to hear of the changes on Friday, so it looks like De Castro has met his deadline.

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.

Michael Katz, one of Yahoo’s high-ranking online advertising execs, is leaving the company, according to a memo he sent out to staff on Friday.

Considered a savvy online ad player and a well-regarded entrepreneur, Katz came to the Silicon Valley Internet giant a year ago when it bought Interclick, the ad-targeting company he co-founded and headed, for $270 million.

Yahoo later used Interclick’s technology in its audience-buying platform called Genome. In a reorganization announced in January, Katz was placed in charge of sales operations and data and performance optimization for Genome.

The data unit is at the center of efforts by Yahoo’s new CEO Marissa Mayer to turbocharge its ad business.

But the Katz missive, which is below in its entirety, clearly signaled that his departure was not an amicable one, which sources underscored was part of a larger rejiggering of the ad sales staff under new COO Henrique De Castro.

“As some of you are starting to learn, my last day with the company will be today,” wrote Katz on Friday. “Leaving Y! is not the hard part — how it happened and leaving all of you is what makes this difficult.”

How it happened, said several sources, was that Katz was suddenly told by HR head Jackie Reses last week that there was not a place for him, only days before a large 12-month retention bonus was to be paid out to him for the Interclick acquisition.

While it is an unusual thing to part on willfully difficult terms with an entrepreneur, as it sends a bad signal to others considering joining the company, Yahoo’s new leadership has been playing hardball with a lot of top execs it is parting ways with, and is also limiting departure packages.

Former marketing head Mollie Spillman, for example, was suddenly let go after she was replaced by former Lockerz CEO Kathy Savitt. And, though he had wanted to leave, former CFO Tim Morse was also told of his replacement in a swift exec house-cleaning move, as was former HR head David Windley.

Of course, such moves are not unusual when a new set of leaders enters the corporate picture. That’s why many at Yahoo expect even more changes to come soon in the ad unit, with most assuming that Mayer and De Castro will bring in new staff they had previously worked with at Google.

Currently, top Yahoo ad execs include Peter Foster, GM of audience advertising at Yahoo; and Mark Ellis, VP of North American sales and global partnerships.

It will be interesting to see what happens to them and others as part of a large ad reorg at Yahoo now taking place, which will definitely include a variety of departures and arrivals. One recent notable Yahoo ad exec departure, for example, was Debbie Menin, who headed entertainment and travel sales strategy, and is now a top sales exec at hot video entertainment network Machinima.

More will come in the new year, given that De Castro has recently briefed employees on a plan to move its sales organization to a “category” model. 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.

That massive shift is not Katz’s to worry about anymore, it seems. Here’s his entire email to staff, which is a pretty eloquent one, as goodbye letters go:

Friends and Colleagues,

6 years ago if someone would have told me that the hardest part about building a business would be to one day say goodbye, I would not have believed them. As some of you are starting to learn, my last day with the company will be today. Leaving Y! is not the hard part — how it happened and leaving all of you is what makes this difficult. I will miss the daily interactions and will take with me the many memories. This has honestly been so much fun.

I have learned a lot along the way:

Sometimes winning looks like losing. If you don’t fail, you can’t progress and the stakes only get bigger as you go further down your path.

Be genuinely happy for those that are successful at reaching their goals. If you spend anytime wishing it were you, it will never be.

Stay humble, and never declare victory.

Approximately correct is better than definitely wrong. Do not let perfection be the enemy of excellence.

We are all human — we may make mistakes, we must forgive, forget, and move on together.

Treating people right is not an option.

Treat adults like adults and they will behave like adults. Rules are for children.

People and culture are everything. It’s about so much more than free food and parties, it cannot be forced and without it a business cannot succeed.

I consider myself so very lucky to have known a handful of loyal friends that took a chance, quit their jobs and risked a lot to build this business with me. Their loyalty and hard work helped interclick get off the ground and for that I will forever be grateful. The team they helped to build has truly made this the greatest place to work. Each and every one of you made interclick the very best company to work for.

I would like to leave you all with a reminder of what together we built:

– A company that started with $27,000 and sold for $270,000,000

– A company that redefined the way that marketers think about audience targeting and data

– A company that went public in 2009 on NASDAQ defying all odds

– A company that spit in the face of adversity early in 2011 and came out victorious

– A company whose people are the future of this organization.

So be proud of what together we achieved, look back and know you were part of something big. Then look ahead and know that this is just the beginning, we will all one day build again. For those of you that continue your career at Y!, I ask that you don’t lose sight of greatness. Remember what you are capable of and continue to make me proud.

Thank you for your loyalty, passion, dedication, and collaboration. The finish line is only the beginning of a new race.

-MK

As AllThingsD previously reported it would, Yahoo has released a new version of its Yahoo Mail offering, updating its Web offering and also adding native mobile apps for Apple iPhone and Microsoft’s Windows 8. It also updated its Google Android app.

The new Web mail has a decidedly cleaner design and improved search, part of an effort to better compete with Google’s Gmail, which has taken major share from Yahoo in the arena in recent years.

In fact, one source told me that the aim was to be “more Gmail-like.” And, indeed, it looks like it is. Yahoo is also working on a radical rehaul of its homepage, which is set to debut in the coming weeks, although the Silicon Valley Internet giant has been rolling it out in testing for months now.

Redoing Yahoo’s flagship properties — especially to focus on mobile — is a key priority at the company under new CEO Marissa Mayer. She said in a blog post that the new Yahoo Mail will be rolled out to most users soon.

It’s an important step, as I noted in my post about the impending changes to Yahoo Mail, which got its last refresh a year ago:

At the time, the first change in five years got good reviews, with a cleaner design, Twitter and Facebook integration, improved spam filters and speedier delivery.

Unfortunately, since then, Google’s Gmail has become the most popular email service in the world, passing Microsoft’s Hotmail (which is now called Outlook.com after a recent rejiggering), according to recent stats from comScore. That has added up to Gmail’s 287.9 million monthly unique visitors worldwide, 286.2 million for Microsoft’s email product and 281.7 million for Yahoo Mail.

Still, in the U.S. at least, Yahoo is holding onto its longtime — though dwindling — lead, with 76.7 million using Google’s email product and 35.5 million using Microsoft’s.

It’s an important spot to maintain for Yahoo, since many of the users of its products now come to the site to access email and it has been a key driver to its content properties.

But to keep mindshare, Yahoo faces increasingly strong competition. Google’s Gmail released a series of solid improvements last fall. In addition, along with the positively reviewed Microsoft Outlook.com redo, AOL has just announced a new email product called Alto. While it is in beta to a small audience, it is aiming to help users with multiple email accounts organize them better.

In others words, the mail business — especially using it via smartphones and tablets — is another place Yahoo has to make sure it remains innovative.

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.

According to sources close to the situation, Facebook is looking seriously at purchasing Microsoft’s Atlas Solutions ad-serving platform.

Sources said the social networking giant has been conducting due diligence on the media measurement platform, part of its efforts to create its own advertising network for third-party Web sites to compete with Google’s DoubleClick offering.

Atlas has been quietly on the market for some time and has been looked at by a number of companies, such as Adobe, said sources. But the effort to sell it got a jumpstart with recent interest from Facebook, which had been debating buy-versus-build options.

While there are some technological issues in taking over Atlas, sources said the prospect of starting from scratch was more daunting than picking up a platform that already delivers billions of ad impressions a day.

Atlas was acquired by Microsoft as part of its 2007 purchase of aQuantive for $6 billion. The new price for Atlas will be substantially lower, said sources, but could involve a more complex advertising agreement between Facebook and Microsoft.

Facebook declined comment and I am awaiting a response from Microsoft.

(Business Insider is also reporting that the pair are in talks.)

Former Yahoo exec Ross Levinsohn, who has laid pretty low since he left there earlier this year, will be joining the board of the Venice, Calif.-based video start-up, Zefr.

“Ross is a perfect intersection of everything we are in media and technology,” said Zefr co-founder Zach James. “He understands both sides natively, and we need that kind of expertise.”

Indeed — the company raised $18.5 million in additional funding this summer to turbocharge its offerings.

At the time, Zefr changed its name from Movieclips, and added sports, television and music videos to its film efforts. Zefr launched in 2009 as a niche video catalog site, focusing on helping movie studios collect and monetize fan and professional postings on YouTube, and offering advertisers a large network of premium movie clips.

The company said then that it had 600 million monthly views, 25,000 movie clips, and three billion total lifetime views on YouTube. It is about to celebrate one billion monthly views.

“Zefr has all the ingredients for success — dynamic, inspiring management, the ability to marry technology and content, and a business model that can scale,” said Levinsohn. “I’m thrilled to be part of the team.”

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.

While it is one of the largest consumer electronics and mobile companies in the world, Korea’s Samsung has a relatively quiet profile in Silicon Valley.

In fact, while it has had a longtime facility in San Jose for two decades, its execs are not well known to many except the top echelons of the tech sector here and Samsung’s interactions with the entrepreneurial culture have been decidedly low key.

No longer, it seems.

Besides a previously announced new 8.5-acre campus in Mountain View for its U.S. research and development center, slated for completion in 2014, sources said the company is close to signing a deal for a prominent venue in downtown Palo Alto that will house a start-up accelerator.

The location that the company is now negotiating is the second floor of the former Borders Books space on University Avenue. The historical property has a splashy movie marquee, since it used to house the Varsity Theatre.

It’s not quite Oppa Gangnam Style, it is a big move for Samsung.

While it is unclear if the new office will focus on making investments in start-ups or incubating its own innovation, sources said it will be aimed at linking Silicon Valley entrepreneurs and other players more closely with Samsung.

Sources said the move is being spearheaded by a relatively new hire by Samsung: David Eun, who became its EVP to lead a new push to create more media offerings in December. Previous to Samsung, Eun has been an exec at both Google and AOL.

Eun is well known in the Valley already, but a new location that will focus Samsung’s digital efforts should raise the company’s profile with the digerati here.

Also on the docket to do that is Samsung’s other new major facility. In September, right in the middle of its high-profile patent trial with Apple, the company announced that Samsung Information Systems America, its U.S. R&D Center, would expand and relocate to a new campus.

“The R&D Center will provide a state-of-the-art campus that can support the current rapid growth in the organization, and also provide the infrastructure to support Samsung’s open innovation and university collaboration activities,” Samsung said in a press release at the time. “Construction is anticipated to start in the second half of 2013 on the company’s two new six-story class-A office buildings totaling approximately 385,000 sq. ft. and two 5-6 story parking structures, with occupancy expected in 2014.”

In other words, Apple: Samsung is now officially in the house in Silicon Valley.

According to sources close to the company, Yahoo is prepping to launch a major overhaul of Yahoo Mail — which sources said has a cleaner, “more Gmail-like” look.

I am not clear exactly what that means in terms of features and design. But sources said the goal of the redo — which has been initiated by new CEO Marissa Mayer, who is also pushing ahead with a new homepage design — is to better compete with the fast-growing mail offering from Google.

“Marissa thinks Yahoo Mail has been a big missed opportunity for the company and she wants to fix that,” said one person with knowledge of the effort, which had also been mulled by previous CEO Scott Thompson.

Sources said the latest iteration of Yahoo Mail will be released in early December, just after the new homepage is rolled out widely.

That’s a lot of change at a critical money-making time for Yahoo, but Mayer — a former top Google product exec — has publicly committed the company to releasing innovative and mobile-focused products as a key differentiator.

It’s a good idea when it comes to Yahoo Mail, even though it got a major refresh just about a year ago. At the time, the first change in five years got good reviews, with a cleaner design, Twitter and Facebook integration, improved spam filters and speedier delivery.

Unfortunately, since then, Google’s Gmail has become the most popular email service in the world, passing Microsoft’s Hotmail (which is now called Outlook.com after a recent rejiggering), according to recent stats from comScore. That has added up to Gmail’s 287.9 million monthly unique visitors worldwide, 286.2 million for Microsoft’s email product and 281.7 million for Yahoo Mail.

Still, in the U.S. at least, Yahoo is holding onto its longtime — though dwindling — lead, with 76.7 million using Google’s email product and 35.5 million using Microsoft’s.

It’s an important spot to maintain for Yahoo, since many of the users of its products now come to the site to access email and it has been a key driver to its content properties.

But to keep mindshare, Yahoo faces increasingly strong competition. Google’s Gmail released a series of solid improvements last fall. In addition, along with the positively reviewed Microsoft Outlook.com redo, AOL has just announced a new email product called Alto. While it is in beta to a small audience, it is aiming to help users with multiple email accounts organize them better.

In others words, the mail business — especially using it via smartphones and tablets — is another place Yahoo has to make sure it remains innovative.

This is a massive move and also a risky one. Yahoo’s homepage sees about 170 million daily users who click in to do a variety of things. That huge traffic means that advertising placements earn big bucks from marketers — which inside sources said is typically upwards of $350,000 for a prime placement for a day, rising in price depending on complexity.

Thus, making any dramatic change to the powerful homepage is a big deal for Yahoo’s bottom line, especially in the important fourth quarter, when big advertisers spend a lot of money online and expect big results.

And the latest versions are certainly a major shift from Yahoo’s older look, with the latest using an interactive tiled approach at the very top that suggests the design spawn of Microsoft’s Windows 8 and Flipboard’s elegant social reading app.

As I noted last week, along with experiments in infinite scrolling, a simplified logo and giving search more prominence, Yahoo’s homepage change seems to be aimed at being consumed on touch-responsive, non-PC devices.

That’s no surprise, since Mayer declared in a recent earnings call that Yahoo was going to veer toward a “mobile first” sensibility. “Yahoo will have to be a predominantly mobile company,” she said.

She also has to aim at being a reliable digital company, it seems. In a bit of unlucky timing — even as Yahoo prepped the home page redo, as well as major overhauls of other products — its hugely popular Fantasy Football offering went down right as eight games were about to start at 10 am PT.

Yahoo acknowledged the slowness in its servers on Twitter, noting: “We’re still working to fix fantasy server issue & will update ASAP. We sincerely apologize for the inconvenience & appreciate your patience.”

Fantasy Football fans were livid, although this has happened before, especially to those who waited to do their lineup. But some were also funny about the screw-up, as you can see below:

Yahoo Fantasy Football site is down. The Republicans were right; America has officially collapsed. The apocalypse is upon us.

— Steve Fuller (@fullsteve) November 11, 2012

Dear Google, please develop a fantasy football platform. That will end Yahoo! as we know it. Love, Long Suffering Yahoo! Fantasy users.

— WFAN Audio Clips (@WFANAudio) November 11, 2012

As of two hours ago, Yahoo said it was still working on the problem. Presumably, it will be the first fix-it challenge for new COO Henrique De Castro, who starts this week.

Hopefully, Yahoo will not have such problems with the homepage rollout, once the final version is selected.

Until then, please check out two images of yet another version, which is similar — although not the same — as the one I posted last week. In the latest design, for example, the swooshy scroll at the top is smaller and a 300 by 250-sized ad unit is back in place at the top. Overall, it is a little bit more conservative, although still streamlined.

Here they are, along with a more dramatic one from last week and also a recent Yahoo homepage:

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(Mark Sanchez photo: Debby Wong / Shutterstock.com)