Today and tomorrow, Yahoo’s directors are gathering here in Silicon Valley for one of their regular meetings that take place over the course of the year.

While board meetings in general are usually pretty dull affairs–and Yahoo’s, in particular, are typically glacial ones–there is a lot on the plates of those with purview over the machinations of the long-struggling Silicon Valley Internet giant.

Here’s a primer of what might (and might not) be happening, according to sources, of course, as Yahoo continues on its quest to reinvigorate itself–a journey that is beginning to make Siddhartha’s transformation into Buddha enlightenment look speedy.

A Yahoo spokeswoman declined to comment on anything below, although I did run it all by them.

The U-Shaped Turnaround

At Yahoo’s recent sales meeting in San Antonio, CEO Carol Bartz went all Sesame Street on the troops, using the letter “U” as an illustration to indicate where in the cycle the company was in its turnaround.

Apparently, just on the other side of the very bottom of the letter, heading inevitably upward.

Her argument was that the company has finally cleaned up its platform mess and its confusing corporate structure, and that its display and search advertising business is now recovering nicely.

All true, except there are some other key issues, such as the slowness of the search and online advertising partnership with Microsoft to make some serious hay.

In fact, although its display business will show a definite strong recovery in Yahoo’s quarterly results next week, its search business–both in market share and revenue per search (RPS)–has, as one person close to the situation put it succintly, “fallen off the cliff.”

That’s due, in part, to getting the new system with Microsoft delivering better results, which is not happening yet (if ever!).

In this quarter, Microsoft has honored its contractual guarantees and will make up the difference–which will result in masking the magnitude of the RPS loss. It’s a worrisome trend to watch.

The Asia Situation

Yahoo and its Asian partners are still mulling over various options regarding the company’s large ownership stakes there.

What is happening with its share in China’s Alibaba Group, according to sources, is precisely nothing right now, as has been made clear in recent comments by its CEO and co-founder Jack Ma.

“If you cannot make the business cool, you have no right to be angry with me,” said Ma in an article in Forbes published this week, referring to Yahoo. “I just don’t trust them…I’ve been working with them for years, and I’m disappointed.”

Relations between Ma and Bartz, sources said, remain as bad as ever, and even the normally close one between Ma and Yahoo co-founder Jerry Yang is strained.

Plus, Ma told Forbes, as he has said before, Alibaba is not taking its auction site, Taobao, public–leaving Yahoo in possession of an appreciating but decidedly private asset.

Japan is a different story, with the disposition of Yahoo’s stake in Yahoo! Japan the subject of long and continuing negotiations for a while now.

While the earthquake and tsunami crisis there did slow discussions down, there is still active recent movement about a variety of cashing-out scenarios, all of which have massive tax and regulatory issues.

Without boring you with the specifics, one option is to create a tracking stock, another a spin-off of the asset and still another some sort of stock trade.

But no matter what happens, Yahoo will have to pay some sort of taxes on its 35 percent stake in Yahoo! Japan, now worth $8 billion.

But if its CFO Tim Morse–the key figure working on the deal–can pull it off, what will Yahoo do with all that money?

Acquisition Guns Blazing? Or Sputtering?

In a recent forum in Silicon Valley, one of its M&A minions said Yahoo had its “guns blazing” with regard to acquisition activity in 2011, as deliciously reported in The Wall Street Journal, despite the company’s lackluster acquisition record.

Sources said the exec had his ears soundly boxed by his managers for the dopey remarks, since Yahoo has had such a lackluster record in the arena–especially compared to others.

And, oh yes, Yahoo’s M&A head just decamped to gaming phenom Zynga.

That aside, Yahoo should be deep in the market for hot start-ups to help revive its innovative spirit, but it remains hindered by a continued reluctance by new start-ups to join it and by its reputation for being a place where entrepreneurs go to die.

That certainly could change at any time with the right execs in place, but Yahoo is competing with a plethora of more exciting companies and also a seemingly endless venture capital gusher of cash of late.

While it is the board’s job to approve acquisitions and not source them, perhaps it is its job to pressure Bartz and other execs to get off the stick and hit at least one of the targets Yahoo aims at.

Targets are plentiful in advertising, content and even social, with many start-ups playing right into a lot of arenas Yahoo needs some help.

And help it does need as talent keeps walking out the door daily, mostly to hotter prospects such as Zynga and social buying sites Groupon and LivingSocial.

There is no question it is hard for any large company to hold onto top staff when there are so many enticing bonbons out there as options, but it can be done.

One good thing: Its newish head of product Blake Irving and head of U.S. media and advertising Ross Levinsohn seem to be playing well together and are setting a tone of stability that is much needed.

Enter the Kenny

That said, there remains endless swirl, especially with key investors, about the performance of its CEO.

While she started off as a publicly in-your-face exec, Bartz has definitely stepped out of the limelight of late, as her pugnacious manner started to irritate Wall Street and others.

It was a good idea, since it has taken the focus off the lack of stock and revenue progress she had loudly promised.

Still, Yahoo shares have continued to stay locked in the mid-teens, as investors wait for some sign that Bartz’s turnaround has worked.

The entrance of its spanking new director, Akamai President David Kenny, has further increased speculation about management and board changes at Yahoo.

This is Kenny’s first board meeting, but this well-connected newbie is someone who is clearly going to rise quickly to the top of decision-making at Yahoo.

That’s because the smooth and well-liked Kenny, who also has deep advertising experience as founder of the Digitas agency, has a long relationship with Yahoo and also with Yang.

He also now has much more tech cred as a leader of one of the Internet’s most important infrastructure companies, with a ton of regular contacts with media giants, ad networks and video providers that are Akamai’s clients.

In other words, Kenny (pictured here) is the full package of ad and tech experience that would make him an obvious Yahoo CEO candidate when Bartz’s contract is up in early 2013, if not before.

He’s also the person most likely to take over for longtime BoomTown punching bag Roy Bostock as chairman of the board at some point.

None of this is happening soon, but it is clearly an interesting development.

There are other machinations, of course, from continued interest from private equity players in Yahoo, as well as a variety of takeover scenarios, each more complex than the next.

While often derided as yesterday’s news by the elite of Silicon Valley as on an inevitable downward path, those plots are there because Yahoo remains a stellar brand with consumers worldwide and an Internet property with huge traffic and a big ad business.

In other words, it’s a U that someday maybe could be a V.

At least once a day, BoomTown gets a call from investors, analysts or other troublemaking types–you know who you are!–wondering why Yahoo is still plugging away in search.

With a declining market share in the arena and a search technology outsourcing deal with Microsoft, it’s not a bad question to ask.

But Yahoo begs to differ, introducing a new feature called Yahoo Search Direct at a press event in San Francisco today.

I liveblogged it, natch.

10:14 am: I was late, as per usual, but walked in just as the session was getting started.

Yahoo’s Chief Product Officer Blake Irving–looking fetching in a purple cashmere sweater–was talking about search.

He immediately turned it over to Shashi Seth, Yahoo’s head search dude, who immediately said: “Answers not links.”

Huh?

Actually, the product is pretty nifty, showing a lightning-speed box that shows more robust search results, although not unlike offerings from both Microsoft’s Bing and, of course, Google Instant.

While both have different takes, it is essentially a direction in which search brings in maps, photos, and–of course–advertising.

You can see a movie times example here (click to make the image larger):

10:23 am: Wait, it was over before it started! Whoa. No more bells and whistles?

And I still was enjoying Irving’s sweater and I wanted to touch it, but that would have been wrong.*

Seth then took questions from the reporters.

“We believe the next generation of search…people are looking for answers,” he said.

Very true, but perhaps not so much from Yahoo anymore.

Still, Yahoo Search Direct is a laudable try and it’s also nice to see some innovation from the long-troubled company.

“We are the premier digital media company,” said Seth, parroting a new description of Yahoo that the Silicon Valley company is now using since its recent sales meeting in San Antonio.

I asked a question about whether there is a dedicated app for the tablet of Yahoo Direct Search, which sources had also told me was shown to the troops in Texas.

Yep! It will be ready later this year.

I also asked about how much all this search innovation was costing compared to return on the investment.

No answers from either Irving or Seth.

Someone then asked if there would be a lift in market share from the feature.

That’s the plan, Stan!

10:41 am: More questions about the comparisons to Google Instant. Of course, it’s the same type of thing, in the contest to win the King of Relevancy crown among consumers.

Google Instant. Yahoo Search Direct. Quora. My dentist, who seems to know everything. In case you didn’t know, dentists are very erudite.

Seth noted that even though Yahoo has only 15 categories covered in Yahoo Search Direct, there will be hundreds to come, as well as more features on top of this feature.

Personally, I want my search delivered to me on a silver tray by a man in a purple cashmere sweater.

Speaking of purple, the demo dude kept putting Elizabeth Taylor into the query box, which depressed me. Violet eyes now closed forever.

That was the real story today.

As if to round out the event, someone asked whether critics are right about whether Yahoo should still be in search.

“We’re in this for good,” said Irving firmly.

“Look, we are not focused on the past,” added Seth, who was not here in this very room at a similar Yahoo search event years ago, when similar promises were made about search going away from a page of blue links. “I don’t even know if you’d call it search in three years.”

What would you call it then?

“Find,” joked Irving. And later, “It’s actually ‘found.’”

Apparently, Yahoo was lost and now is found via Yahoo Search Direct.

*By the way, I touched the sweater, which was–in fact, Blake–periwinkle, which is a twee version of purple.

(You can see a video interview I did with Seth after the demo here.)

In the wake of the departures of two top ad execs to social buying sites, the hiring of another from AOL and a whole new sales management team in place, it’s got to be time for a reorg at Yahoo!

And so it is.

Below is an internal memo from Yahoo’s head of U.S. ad sales Wayne Powers–who was hired in November–about changes in the Silicon Valley Internet giant’s key advertising unit.

The changes come in time for Yahoo’s global ad sales meeting, taking place in San Antonio, Texas next week.

The theme of this year’s event is “The Race Is On,” sources said, which BoomTown does not exactly grok.

Who is Yahoo racing? Does it have a fast car to do so? And is it an amazing race or just meh?

Sources tell me that, unlike at previous such confabs, there will be no big names speaking, with a focus instead on the basics of sales training and operations.

More interesting: Apparently, there are no phones allowed and violators will get their wrists slapped.

Obviously, you ad sales people will have to leak to me via carrier pigeon.

In all seriousness, it will be an important gathering as Yahoo seeks to revitalize its sales team, which has seen a spate of management changes recently.

Most recently, two longtime sales execs have left–Lee Brown to Groupon and Mitch Spolan to LivingSocial–while former AOLer Mark Ellis joined.

Here’s the rest of the mishegas via the memo:

From: Wayne Powers
To: XXX@yahoo-inc.com
Cc: Carol Bartz
Cc: Ross Levinsohn
Cc: Blake Irving
Cc: Elisa Steele
Cc: Tim Morse
Cc: David Windley
Cc: Rich Jacquet
Cc: Rose Tsou
Cc: Wayne Powers
Cc: Christophe PARCOT
Cc: Susanna Lee
Cc: Linda Lubsen
Cc: May Petry
Cc: Tekeita Lodge
Cc: Zealous Wiley

Subject: Organization Announcement

Sent: Mar 8, 2011 3:01 PM

Team,

As we evolve our best-in-class sales organization, I would like to make two key organizational announcements. I am pleased to announce that Liz Ritzcovan will be joining Yahoo! as vice president of Marketing Solutions, leading our Sales Development organization. I am equally excited to announce the promotion of long time Yahoo!, Andrea Morokutti, to vice president of Sales Operations and Strategy.

Liz was most recently vice president, Corporate Sales and Client Services, Digital at Time, Inc. where she led all media efforts and oversaw strategic digital planning processes in coordination with Time Inc, Amex Publishing and Time Warner Broadcast. Along with her team, she was focused on developing and forging sales and marketing partnerships to ensure broad distribution and effective media planning for Time’s corporate and brand partners.

Liz brings an impressive history increasing profits and expanding client and partner bases for various organizations ranging from entrepreneurial start-ups to leading multi-billion dollar global corporations. Prior to joining Yahoo! she held various leadership positions at Interbrand, CondeNast and Miller Publishing. Her expertise in print, digital, broadcast and emerging media strategy and new advertising models will be a tremendous asset to the organization. Liz has a B.A. from University of New York at Potsdam. Liz will be starting later this month and will be based in New York. She will also be at the sales conference and is looking forward to meeting many of you.

With nearly 11 years under her belt at Yahoo!, Andrea’s most recent role has been vice president of Demand Ops Finance in the Americas Region under Mark Liao. Prior to that, Andrea held various leadership positions within finance, including support of the CMO organization, Mobile and Corporate. With Andrea’s solid expertise in finance and business strategy, this new role was a natural progression for her and we excited to have her join the team. Andrea will continue to be based in Sunnyvale.

Both Liz and Andrea will report directly to me. Frank Weishaupt will continue to lead our North America Region Ad Marketplaces organization. And I’d like to thank him for his leadership of the Sales Development and Operations organizations over the last nine months.

Please join me in welcoming Andrea to the team and Liz to Yahoo!.

On a related note, Mark Ellis started last week and is up and running. He’s hitting the road and spending time meeting clients and Yahoos. Look out for him next week at the sales conference.

I’d like to thank Mitch for his many years of service at Yahoo! and wish him the best of luck in his future endeavors.

Wayne

As the No. 3 in the market, the Seattle-based company may be the next candidate, if things remain as frothy as they have been.

“My phone is certainly ringing,” Tobias said in an email yesterday.

Tippr has taken a slightly different approach than either LivingSocial or Groupon. It doesn’t have thousands of employees, for example–only 45, of whom 24 are in sales.

In February, it had launched in Seattle with five subscribers. Today, it’s up to 13 markets and “hundreds of thousands of subscribers.” The growth is not only thanks to their own sites, but also by enabling others to join the group-buying frenzy, as well.

Tippr wants to be a platform, not a brand, so if you haven’t heard of it, it’s possible you never will. Even in Seattle, deals seem sporadic, and most offers are from places within walking distance of Tippr’s Queen Anne neighborhood office.

But, to cast a wider net, Tippr recently signed a partnership with Belo Corp., a television network that leverages Tippr’s platform to power its own local deals site, Yollar.com. It uses its own local sales force to make deals with merchants in markets such as Dallas, San Antonio, Houston, Seattle, St. Louis, Portland and Boise. All these individual sites, powered by their own sales force, creates a magnifying affect that Groupon can only match by adding more sales people.

“Groupon is not like Facebook or eBay, where the winner takes all,” he said. “This is more like search.”

EBay became successful by generating a critical mass of buyers and sellers, and Facebook has staying power because once you define your social network, Tobias posits, you don’t want to have to build it again.

“With Groupon there’s nothing locking you in,” he said. “You haven’t invested anything, and the merchants don’t care either.”

Tobias talks tough–despite the apparent lack of interest from Google or Amazon–because he believes he has the IP to back it up. In November 2009, he acquired the patent portfolio of defunct Mercata, a Paul Allen-backed group-buying venture from Web 1.0.

He traded stock in Tippr’s parent company Kashless for the patents, which include more than half a dozen granted patents covering areas like price optimization, demand curve modeling and buyer-seller interaction models. Today, Tippr is announcing a strategy around these patents. A spokesperson said its new “patent licensing program for group-buying” will charge anyone, from white label partners to competitors (theoretically, Groupon), a fee to license them.

Tobias is also bullish, because in his last venture he was attempting something much larger. As CEO of Imperium Renewables, he raised around $500 million in capital to produce biodiesel on a mass scale, which he admits is not enough “when taking on Exxon.”

But taking on Groupon, which may have annual revenues of up to $500 million? To him, that’s doable.