One of the results of Yahoo’s weak earnings report earlier this week has been the renewal of chatter about possible changes in its leadership and even ownership.

And continued investor discomfort with its troubled stock price–Yahoo shares are down 7.25 percent year over year and an astonishing 49 percent on a five-year basis–and the level of renewed grumbling by major institutional shareholders is causing some key players to go back to their PowerPoints to reevaluate various options.

(By way of contrast, Google is down about 4.5 percent year over year–largely due to last week’s earnings release with higher than expected expenses–but still up more than 20 percent for the five years.)

As many might recall, last year Yahoo was under scrutiny by a number of interested parties–from big media companies to other digital players to private equity firms–considering a number of takeover scenarios.

Most of them were just talk and no action resulted, but that did not mean that interest went away.

The truth is, they are still out there and ruminating–this time with what sources describe as a much more amenable Yahoo board, with several of its key members willing to entertain any legitimate offers or ideas to improve the Silicon Valley search giant’s prospects.

In the last go-round, by contrast, Yahoo’s top execs–including CEO Carol Bartz–denied any interest in the swirl of rumors related to a variety of ideas.

That’s definitely changed–at least at the board level–so here are three very credible scenarios of what could happen:

Peetie, Peetie, Yahoo-Sweetie

Late last year, BoomTown wrote a post about the interest that former News Corp. COO and President Peter Chernin–who now owns his own entertainment production company–had in the situation at Yahoo.

As I wrote in November:

But multiple sources from a variety of sides said that Chernin, a well-liked and deeply experienced media and entertainment exec, has been contacted by a number of private equity firms and other investors about his interest in becoming involved should any of the various and sundry scenarios around the Internet giant pan out.

And Chernin, many sources said, has expressed a definite interest in the situation, perhaps because he was deeply involved in a previous deal when running News Corp.

At the time, it involved combining the media giant’s Myspace social networking site with Yahoo and also Microsoft’s portal MSN and creating a new company, code-named “TrafficCo.”

Indeed, that interest remains for Chernin, who has also been an increasingly active investor, including in the digital sector. He is an angel funder of the hot social media app start-up Flipboard, and also just joined the board of the popular Pandora music service.

The most likely possible scenarios have him joining with deep-pocketed partners, including Providence Equity Partners and, yes, Microsoft, as well as investment banks or advisory firms, such as Morgan Stanley and Code Advisors.

The approach being considered–which would only be done in a friendly way, with the cooperation of Yahoo’s board–would center on making a large enough investment in its shares, allowing the group to take control of the management and the board, putting Chernin in as chairman and maybe CEO (or with a new CEO–see next section).

If Microsoft were involved–and Chernin has strong ties there–such a scenario might include folding all its online properties into Yahoo and renegotiating its rocky search partnership, too.

This is an idea that intrigues a lot of people–including current Yahoo board chairman Roy Bostock, co-founder Jerry Yang and other board members–who have indicated recently to several investors and dealmakers a willingness to listen to credible player such as Chernin.

But, in this scenario, it would be up to Chernin and his partners to make a prosposal, said sources, and he might decide that the complexity of getting the power to make big changes at Yahoo is too big to tackle.

In addition, Chernin remains a successful Hollywood player, with several major television and movie projects in the works, as well as big investment possibilities in Asia.

“Does he want the headache of Yahoo at this point in his career?” asked one person, among many Chernin has talked to recently about becoming involved in the company. “Would you?”

Maybe so, if it would provide a big financial windfall. Many think an exec with a reputation like Chernin’s could easily begin to move Yahoo’s moribund stock upward quickly.

ABC (Anybody But Carol)

Here’s one truth: Yahoo CEO Carol Bartz does not get proper credit for a number of moves she has made since coming to the company two years ago, including cleaning up the messy corporate structure, de-complexifying garbled systems, cutting costs and bringing its far-flung operations into line.

Yahoo’s stock is certainly doing better than when she arrived in early January of 2009, when it was in the $12 range compared to its current $16 price point.

But here’s another: That stock price now includes more than $10 in solid assets–cash and Yahoo’s much more valuable stakes in China’s Alibaba Group and Yahoo! Japan–leaving very little true share appreciation.

And here are more truths: Bartz’s inability to get revenues growing, innovations flowing, promising start-ups acquired and–most importantly–to stop the continual exodus of talent out the door of Yahoo has made her tenure shakier than ever.

Add to that making its relationships with Asian partners more tense, almost no traction in key mobile, video and social arenas, a record of loud public declarations that have fallen flat and serious troubles in Yahoo’s search and online partnership with Microsoft–a deal Bartz struck and is charged with managing–recently highlighted in Yahoo’s earnings earlier this week.

As shareholder activist Eric Jackson, who has long agitated for change at Yahoo, wrote this week in a post:

“The truth is that investors are fed up with Bartz. Their enmity towards Bartz is palpable when you talk to them. Bartz talked a big game coming into the job and she hasn’t delivered. It’s that simple.”

Well, not that simple and maybe not fair, but it’s also clear that no one thinks Bartz will be re-upped when her contract is up in 18 months.

Thus, it’s no surprise that ideas of other possible leaders of Yahoo are being contemplated now.

Here’s the short list I have made of my choices: Akamai President and Yahoo board member David Kenny; former Microsoft exec and current Juniper Networks CEO Kevin Johnson; former AOL CEO and current News Corp. digital head Jon Miller; and Nikesh Arora, current Chief Business Officer and sales head at Google.

There are plenty more to pick from, of course, and any could be installed in conjunction with an effort such as Chernin’s.

AOL Under the Hoop

No good Yahoo scenario plotting can be contemplated without including AOL and its flashy CEO Tim Armstrong.

Armstrong has made no secret of wanting to get ahold of Yahoo properties to apply the strategy he has been trying at AOL to get it moving again.

Which is: To become the premiere digital media company.

Which is actually Yahoo’s new motto–although arguably, in word and deed, Armstrong has been much more active in pushing the concept and narrative.

That includes his incessant acquisitions of all kinds of online media properties, including the big fish–the $315 million purchase of the Huffington Post and the coronation of its even-flashier co-founder Arianna Huffington as content chief.

Armstrong has certainly not been averse to the idea of a Yahoo-AOL hookup with him at the top, and has been actively talking to anyone interested in such a deal.

And things could get a lot more interesting if AOL linked with a bigger strategic partner, such as News Corp. or Disney or even Google, Armstrong’s former stomping grounds.

Still, wishing does not make it so, especially with a much smaller and weaker set of assets than Yahoo and a still poor record on goosing its advertising sales.

AOL’s stock is down 30 percent year over year, as investors still worry about Armstrong’s ability to turn the company around, which kind of puts him in the same situation as Bartz.

“AOL is waiting under the hoop for whatever happens, which is a good place to be,” said one person close to the situation. “Why not?”

Why not, indeed–so, let the games begin.

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.

Nokia has already announced the key piece of its strategy–a shift to Windows Phone for future smartphones. Now the company is set to talk about the financial implications of that and go through the rest of its strategy, which includes a mix of Symbian and even a dash of MeeGo.

The investor event is scheduled to start shortly and due to run until about 2 pm London time. Mobilized will have live coverage, providing our battery holds out. I’ll try to mention only the high points, however. Mobilized loves numbers, but it is awfully early for a whole lot of financial speak, especially for the U.S. insomniacs tuning in.

12:02 pm: Still waiting for things to get going. But if you really want something to do, we have plenty of earlier coverage, including the press conference and the YouTube video of Microsoft CEO Steve Ballmer and Nokia CEO Stephen Elop, as well as a chat with Elop on how he made his big decision.

12:05 pm: Okay, things are getting going as Elop takes the stage (the same one as the earlier press conference.

12:06 pm: Elop is reviewing things. Lots of talk of both challenges and gems. If you read his memo, or anything else he’s said recently, you have heard this.

Battle of devices to war of ecosystems, etc. Mobilized has this part memorized.

12:09 pm: Smartphone strategy is just one piece.

Reviewing the three alternatives that Elop considered–MeeGo, Android or some partnership with Microsoft.

As for Google, Elop says it is the case there are some advantages for that approach.

“There’s something happening there. There’s no denying that.”

However, Elop says the company was worried it would be late and be just one of many, and was not sure how it could leverage assets like its Navteq location-based services.

“Our sense was differentiation could be a pretty big challenge,” Elop says. “The risk for commoditization would increase dramatically.”

Feels profit would have eventually moved to Google, with handsets becoming a commodity.

“It felt a little bit like giving up and not enough like fighting back,” Elop says.

12:12 pm: As for Microsoft, Elop says both companies are bringing something to the table.

As expected, Elop is characterizing this as more strategic than just taking a license to Windows Phone. Talking about Nokia services like mapping, local advertising and other things that Nokia can bring to the table.

“It’s far more interesting than a simple licensing deal,” Elop says. This was the only strategy that makes it a three horse race with Google and Apple.

Elop says he is convinced that Nokia will be able to differentiate within the Windows Phone ecosystem on a sustainable basis.

12:15 pm: There were some challenges and potential disadvantages, he acknowledges.

Top among these is the fact that Windows Phone 7 is new on the market.

“It’s early,” he says. “Will it succeed?”

12:17 pm: Also, there is the issue of being locked in or a lack of control. Elop does not disclose terms but says the company has flexibility and “substantial control” over the future of the ecosystem.

“This is not your mother’s OEM deal with Microsoft,” Elop says.

12:17 pm: Elop says the deal is at the “term sheet” stage, noting that the companies have yet to sign the “definitive agreement.”

12:18 pm: Already the engineers are working through, and Elop says this deal will allow Nokia to move far faster than it has in recent years.

12:18 pm: He’s also making the cost-saving argument, saying Nokia can focus its investment, which he acknowledges hasn’t been getting the return it should.

Elop earlier acknowledged that the company expects significant cost savings from the move as well as substantial workforce reductions.

“Bottom line: Products that are more competitive,” he says.

12:22 pm: Operators are excited by a third viable option, Elop says.

“A two-horse race is not a satisfactory [situation] for operators,” Elop says.

Elop says that Microsoft-Nokia will be operator-friendly, as compared with Google and Apple.

12:24 pm: Elop talking about differentiation–a key concern of analysts and investors.

Elop talks about Windows Phone as offering differentiation form Apple and Google, but also insisting that Nokia has the assets and business terms it needs to stand out from other Windows Phones. He focuses on camera technologies and “unique relationship.”

Stresses again that this is not a standard handset maker agreement. But he also says that just because Nokia can change lots of things within Windows Phone, doesn’t mean it should.

Nokia, he says, must “resist the temptation to customize just for the sake of customization.”

12:27 pm: Now talking about Symbian. For those that missed it, Elop reiterates this is a transition strategy, but adds that the company still expects to sell 150 million more Symbian devices before that transition is complete.

12:29 pm: Strategy is more than just smartphones. He wants the company to be a leading force in connecting the next billion people to the Internet via phones in emerging markets. “The market for feature phones is pushing down the price curve and that is an opportunity for Nokia.”

Nokia will do incremental work in that area–things like Nokia Money for people that don’t have a bank account or telephone. Another, Nokia Life Tools, helps connect, say, farmers to market information.

This area is still a target for innovation, he says, but it also faces competition from Chinese-made phones based on MediaTek chipsets.

Elop says that the company must also plan for the future so that it can be disruptive down the road. “As they say in Finland, it is time to shoot ahead of the duck,” he says.

That’s where MeeGo comes in–the mobile version of Linux that until recently was seen as Nokia’s future. Nokia said that team will ship a phone later this year and then see where the future is headed.

12:35 pm: Want to point out this New York Times article that said both Google and Microsoft were offering hundreds of millions of dollars in engineering and marketing support in order to woo Nokia.

12:36 pm: Elop now talking about cost cuts, including significant job reductions.

“We are not announcing how many and in what country,” Elop says, but adds that the company wants to move quickly on that front.

He says that he has made changes to the business to ensure speed, including leadership structure changes aimed at ensuring accountability. “If things go well today, I’ll be the CEO.”

Of note, the two of the three business unit leaders are women–Mary McDowell, who will lead lower-end phones, and Jo Harlow, who will head the smartphone business.

12:40 pm: Nokia looking for a new leader for its services and developer division. The acting head is Tero Ojanpera, but he will soon be looking for other opportunities within Nokia, Elop says.

Also of note, Louise Pentland, who is head of the legal and intellectual property unit, is being elevated to the top leadership team.

“We have one of the strongest patent portfolios out there” he says, adding that he would encourage all players to take a license to said patents. (hear that, Apple?)

New leader of North American sales unit to be named in coming days.

“We are creating a different industry,” Elop says in closing his introductory remarks.

12:44 pm: Elop Brings on CFO Timo Ihamuotila to go through the numbers.

12:46 pm: Ihamuotila acknowledged Nokia didn’t meet the targets it had set out to achieve at its last financial analyst day.

“Our execution did not cut it.” he says.

12:49 pm: Ah, Now on to the good stuff. CFO talking financial impact from Microsoft deal. Says should be good over the long term.

Slide shows royalty payments to Microsoft causing lower gross margins, but says sales and marketing support from Microsoft should lower operating expenses.

“We will receive substantial go-to market support from Microsoft,” he says, without giving numbers.

12:52 pm: Ihamuotila talking now about the company’s long-term targets for devices and services period “after the transition period.”

Device sales to grow faster than the market, with operating margins of 10 percent or more–but this is only after the transition period, which the company has said could last this year and next.

Significant uncertainties in this period.

Ihamuotila shows a slide showing Symbian sales slowly giving way to Windows Phone with lower-end mobile phones remaining about half of sales.

12:57 pm: Ihamuotila shows chart of how it expects to cut R&D with the company investing less in services, more in entry-level phones and far less on MeeGo, though still some. The investment in Symbian will be replaced by a far lower investment in Windows Phone R&D. Overall, R&D should be a fraction of what it was.

1:02 pm: Over long term, Ihamuotila says that the Microsoft deal should help significantly boost the company’s Navteq navigation business.

“We think this new strategy is the best way to maximize long-term value, both to our shareholders and to other stakeholders,” Ihamuotila says.

On to Q&A for financial analysts.

1:03 pm: Question on how Nokia will keep employees motivated, something else and when to expect the first Windows Phone.

“Thanks for the one question” Elop quips, before addressing them in turn.

Elop says that the key is on focused innovation so they see the fresh opportunities (at least for the ones who don’t get cut by the large workforce reductions also promised).

He also pointed to his sharply worded memo, which he said was designed to convey the message that “Here is the truth, we’re making decisions and we’re moving forward.”

Won’t give date on first Windows Phone, but says again that the move will allow a substantially faster pace than the company was on with Symbian.

1:07 pm: Elop is asked about some of the challenges with Microsoft and Nokia each responsible for different pieces of software and services, as opposed to Google and Apple, where things are more integrated.

“We wanted to drive operational simplicity,” Elop says, adding that the companies talked about other arrangements, though not a full-on acquisition. The companies, Elop says, decided not to go with the operational complexity of a joint venture.

1:10 pm: Elop says Nokia has opportunities to differentiate from other Windows Phone devices, but adds it is in Nokia’s interest for there to be other strong handset players supporting Windows Phone.

“We’ve got to make Windows Phone successful,” he says.

Nokia’s mapping technology, he says, will benefit rivals like Samsung and HTC. “We’re willing to make those trades,” Elop says.

1:11 pm: Elop is asked why he feels comfortable with a “bet the farm” strategy on Microsoft, a company he clearly knows well.

Elop points out that it was harder to see how Microsoft would rapidly be successful without someone like Nokia.

“But this is now different,” he says, adding that this is now an ecosystem that Microsoft and Nokia are jointly helping to build.

Mapping and local advertising were not part of the ecosystem before the Nokia-Microsoft partnership.

As for impact of the transition, it’s hard to say, Elop says. Symbian is strong in some places where Apple and Google are present today.

1:14 pm: Asked whether Nokia will remain profitable during the transition. “It’s hard to say financially, and I am not going to provide any further specific guidance.”

1:17 pm: Elop won’t say when the first Windows Phone will ship, but lots and lots by next year at various price points.

“We’ll be shipping in volume in 2012,” he says.

1:20 pm: Another two-parter! 1) Why will Symbian be supported if it is transitioning away? 2) Why does Nokia think it will be able to have double-digit operating margins using someone else’s platform?

Elop: They recognize Symbian is key to Nokia being able to transition, but he agrees that consumers will have to want the Symbian phones Nokia builds. CFO also notes that less than half of Symbian phones are sold through carriers.

As for question on margins, CFO says the company has opportunities for higher margins around services and advertising.

1:23 pm: Asked about how the company is confident Windows Phone can get to lower prices, Elop says that was a key consideration, down to which chipsets will be supported, etc.

Between the two companies there was a lot of work to get a high degree of confidence.

“That was a critical evaluation,” he says.

That said, Elop agrees there is a smartphone market below Windows Phone that Nokia will manage with an evolution of today’s Series 30 and Series 40 operating systems.

1:31 pm: Elop: Some of the hardware designs that would have run MeeGo or Symbian will be repurposed for Windows Phone. Some devices may come out with similar models for both Windows Phone and Symbian.

1:32 pm: Question again on who pays whom in Microsoft-Nokia. Is there a lump payment from Microsoft?

Elop doesn’t answer and instead refers to slide that shows opportunities on both sides. Saying value going both ways. As for Microsoft’s payments, “That is a significant part of the conversation,” Elop says.

1:35 pm: Two good questions: Can Windows Phone be put on any current devices? What happens to QT development layer that Nokia bought and had sought to unify developer approach?

Elop: It’s not as simple as plugging in and downloading on to current phones, though some technologies can be repurposed.

QT continues to be the development for Symbian and lone MeeGo device. Also could have a role on low-end devices.

However, Elop says, “We are not proposing a QT on Windows Phone” approach. Adding another development environment could fork the ecosystem, which is not good for Nokia or Windows Phone, he says. Development environment for Windows Phone will be Silverlight and XNA–Microsoft’s current tools.

1:38 pm: Asked about branding, he says in some cases you will see both Microsoft and Nokia brands. Examples could include Nokia Search powered by Bing or Bing maps powered by Nokia, though he says those are examples and not final choices.

1:39 pm: Asking about tablets, questioner points out that Nokia had an early lead in tablets, but Apple “stole the show.”

“We are not announcing today a specific tablet strategy,” he reiterates, saying that Microsoft creates opportunities.

Elop notes that there are rumors of Windows Phone and Windows that could power tablets.

“We could do that,” he says. “We might do that.”

Also an opportunity for Nokia to step back into the game using its own software.

1:41 pm: Elop wrapping up.

“We have set a new course for Nokia,” he says, adding that despite what has been written, Nokia is still an incredibly powerful company, though perhaps not in North America. “Today we are diving forward” he says. “We have a strong partner in Microsoft who is incented as are we in making this successful.”

Investor guy closes by reminding there were forward-looking statements. He’s still going as people leave the room.

COMPLETE COVERAGE:

• Nokia’s Stephen Elop Talks to Mobilized About the Big Microsoft Deal (Video)
• Massive Layoffs Expected at Nokia
• Nokia’s Microsoft Partnership: Does the New Strategy Add Up?
• Live From the Nokia-Microsoft Press Conference: It’s a Windows Phone World After All
• More From Nokia: Forecast Gets Cloudy, Plus Expected Executive Changes
• Nokia-Microsoft: What Steve Ballmer and Stephen Elop Have to Say in Their Joint Letter
• Nokia Confirms Microsoft Partnership With YouTube Video
• R&D Spending: Nokia Vs. Apple Shows Size Doesn’t Matter
• Not Seeing Much Return on That Massive R&D Spend, Are You, Nokia?
• Nokia: Big and Slow

No big deal, Google said–just a little re-org.

And at first blush, Wall Street seemed to take the company at its word. Eric Schmidt, Larry Page, whatever. A sampling of analyst reactions:

• J.P. Morgan’s Imran Khan: “We think it is important to note that although the titles have changed, the core team remains the same. We think this new team structure makes a lot of sense and could result in faster decision making.”
• Citigroup’s Mark Mahaney: “We view this change as un-dramatic, as Eric Schmidt will still be working closely with Page and Brin…we believe Larry Page has been groomed for the role of CEO, and we don’t expect any dramatic changes to Google’s core strategies.
• Barclays’ Douglas Anmuth: “We don’t actually view it as that material of a change. We still think Google will be run in a similar manner as it is today, and mostly by the same people.”

Investors also seemed to yawn, or at least they seemed to last night: Google stock moved up a little bit after the market closed, but that was it.

Today, though, the story is harder to discern from the GOOG chart, which is one of the reasons you should always be wary when someone tells you with confidence why a stock is moving one way or another.

Watch the huge spike at this morning’s open, and then the steady decline. This was taken shortly before noon, New York time:

Again, don’t make too much of a stock’s movement on any given day. But you do have to wonder if any of this reflects a reassessment of the move.

It is definitely true that Larry Page was deeply involved in every major decision Google grappled with, and it’s undeniable that the company relies on a second tier of executives, like CFO Patrick Pichette and sales boss Nikesh Arora, to make the trains run on time. So, easy enough to argue that there’s no real change.

Still, now we’re seeing reports reminding us that the weird power-sharing arrangement between Schmidt, Page and co-founder Sergey Brin was, in fact, a weird arrangement. And that it didn’t always work smoothly. And that the three men may not have been on the same page about a variety of things. Which means that the company may in fact behave differently under Page’s guidance.

Which again, isn’t necessarily a bad thing. But it could be a new thing–and Wall Street never quite knows what to make of that.

I caught up with Li last week to talk about the way he sees the cloud shaping up in the enterprise, and where he’s seeing opportunity as it develops. If cloud computing turns out to be the fundamentally new computing platform that many think it is, then there’s a lot of different pieces–Li refers to these as layers–that have to be assembled to make it work. And it’s in those layers where he looks for opportunities.

NewEnterprise: So what do you mean when you talk about the “cloudframe”?

Li: “I keep telling everyone that every time there’s a new computing platform, you basically have to re-create all the pieces of the mainframe. The basic building blocks of computing don’t change. You still need provisioning, management, security, and you need networking. The pieces may change, and different layers get merged into others. I’ve been calling it the cloudframe, for lack of a better word, which allows you to redefine all the layers, from the data layer to the storage layer to the provisioning management layer. Some of the layers that may have been separate before are being merged into one. So I’m spending my time figuring which are the layers that you can build a company around and which are the ones that become features rather than products.

So what are you finding?

There are two layers I’ve spent a lot of time time on, and where we’ve made investments. One is the data layer, and one of the companies I’ve spent a lot of time on is Cloudera, which is built around the Hadoop ecosystem. With the new types of data and applications that are out there, it’s really challenging the idea about whether the relational database is the right data management solution of the future. If you look at the big Internet data centers, say at Google or Facebook, the answer is no. There are no Oracle databases running those applications. Instead they’re using things like Hadoop and MapReduce and distributed file systems on commodity hardware. So I think the whole data structure is moving because the types and volumes of data are changing so much. The data is a lot more complex, and there’s a lot more of it.

There’s been a lot of suspicion and resistance in the enterprise toward letting critical data and applications out the door to run on someone else’s hardware. Is that changing?

I’m less rigid with my definition of the cloud. It doesn’t have to all run on Amazon or something like that. This cloudframe idea is really about extracting applications and services from underlying hardware and resources. It’s about having things available to you anywhere, and having them scale up quickly. They can exist on both sides of the firewall. When we launched Cloudera we thought everyone was going to want to run things on Amazon’s cloud. But most enterprise customers are running large installations of Hadoop on their own servers.

So the data layer is clearly one place where you think businesses can be built. What are some of the others?

Once you have the data layer set, there will be a lot of innovation on the storage side. We’re doing a lot of things around flash memory storage. We’ve invested in Fusion-io, which uses flash memory to build high-performance storage systems. Before, you had to have a storage area network to get the performance and availability you needed to run a big database application. Adding flash memory to your storage lets you expand a lot and do it efficiently. If you look at a lot of the cloud data centers, there’s not a lot of EMC and NetApps gear running in them. There’s a lot of commodity white boxes with Fusion-io starting to get deployed in them.

Last year you joined the board of Nimbula after Accel made an investment in it. That must be part of another layer you like, right?

That’s the application layer. Nimbula is from the guys who first built Amazon EC2. Now they’re actually building a private version of EC2, for the enterprises who for one reason or another can’t go to the public cloud. If an IT manager wants to deploy an app these days they have to put in a request and then he may get servers in six months. With EC2, if you want to deploy something for testing or whatever, all you need is a credit card and you can get it going right away. The Nimbula guys are building a technology that provisions and manages cloud services out of your own IT resources. A lot of enterprise IT guys I talk to say their bosses point to Amazon EC2 and ask, “Why can’t you build me one of those?” Now they can.

All the layers are all getting reinvented. Some will be a service, some will be on-premise. For a new platform to emerge, a lot of things need to come together, and I think a lot of things have been in the making for a while. The environment feels as ripe as it ever has.

Empty bracket or no empty bracket: Will it work?

That’s pretty much the big question at News Corp. tonight, as its much beleaguered social networking site, Myspace, rolls out a new beta version aimed at shifting its fortunes.

And how will it do that? By moving dramatically away from its roots as a social networking site–and far, far away from powerhouse Facebook–and becoming a “social entertainment” hub aimed directly at the Gen Y audience.

That means heavy emphasis on the sharing and discovery of music, television, movies, games, videos and photos from within Myspace and without. There is also an upcoming new mobile site and better apps for smartphones and tablets.

And it also includes a new logo that features “my” with an actual fill-in-the-space bracket after it.

By the way, it’s now “Myspace”–dropped second cap–rather than the old “MySpace,” and the new color palette is black, not blue.

It is a bold, if risky, move, which could result in a dramatic decline of users or–despite the grim reality of second acts on the Internet–reset Myspace to begin a new cycle of growth.

For sure, as you can see from the screenshots below, it is a cleaner, hipper and much more attractive offering, with a tile format, ridding Myspace of its longtime cheap and noisy feel.

You can still toggle to a list or video view of the homepage.

Still, Myspace continues with the irksome moving parts, such as continually updating live notifications and real-time rolling number tickers that move constantly as people share various content.

It sort of reminds me of that national-debt clock in Times Square in Manhattan, but not as riveting.

Amid the better ability for bands and artists to more easily attract fans and promote themselves on Myspace, regular users can also become social arbiters–called “curators”–by active and useful sharing of their tastes.

And, perhaps most important of all, you can bring in a lot of outside sources, broadcast out to Facebook and have a two-way feed with Twitter.

Behind the scenes, Myspace has also done a major overhaul of its tech structure, which has been much maligned. In fact, it was once described to me as being made of “bubblegum and baling wire.”

Here’s an appalling stat, for example: There have been 117 different Myspace logos created for the service.

We’ll see how it goes, but here are videos Myspace did about the launch, including a logo-ganza:

And here are more screenshots than you ever would want (click on the images to make them larger):

Finally, here is the official press release:

MEET THE NEW MYSPACE

Myspace Debuts New Brand, Beta Website and Suite of Products That Focus on Social Entertainment for Gen Y

Beverly Hills, October 27, 2010 – Today Myspace announced a new brand, beta website and a suite of products that together redefine the company as a social entertainment destination for Gen Y. Myspace is creating a rich, highly personalized experience for people to discover content and connect with other fans who share similar interests. The entertainment experience will span music, celebrities, movies, television and games and will be available through multiple platforms, including online, mobile devices and offline events.

“This marks the beginning of an exciting turning point for Myspace. Our new strategy expands on Myspace’s existing strengths–a deep understanding of social, a wealth of entertainment content and the ability to surface emerging cultural trends in real time through our users,” said Mike Jones, CEO of Myspace. “Myspace is unique in that it is powered by the passions of our users, who program the site by expressing interests, sharing tastes and knowledge around particular topics, and scouting out up-and-coming subcultures. This is the just the first step and there will be many more features, programs and improvements to come.:

Specifically, Myspace will provide people with the ability to:

• Discover and engage with Myspace’s broad array of programming, including originals, exclusives and content from around the Web.
• Express, collect, and display their creations and interests on their profiles and through sharing tools.
• Connect to other fans with similar tastes.

Myspace will also focus on promoting curators–a subset of its audience whose reputation and knowledge around particular entertainment topics and emerging cultural trends make them uniquely influential–by supporting them with the resources, tools and a platform to expand their reach within the Myspace community.

Newly Designed Beta Site

Myspace has completely rebuilt its website, with a new visual identity and product features that put content center stage. From the color palette to the way the site is organized to the improved navigation, everything has been redesigned to help people easily find relevant content.

The redesigned Myspace welcome page showcases fresh content as it bubbles up across the beta site in real time. Additionally, once a user logs in to Myspace, the page will instantly populate with content based on the individual’s interests, creating a unique, contextually relevant discovery experience.

Registered users can now also toggle between three different views of the homepage, each specifically designed to display their stream in the way that resonates most. These include:

• List view: Traditional view
• Grid view: A magazine-like format
• Play view: A video format that allows users to watch, forward and resize their updates to full screen

To complement the online experience, Myspace will soon release a mobile version of the beta site, accessible on any mobile browser. A new Myspace app for iPhone and Android devices will follow later this year.

New Products

Myspace has released a suite of initial features that empower people to discover, collect and display entertainment content, while also offering tailored recommendations. These features include:

Topics–Myspace features more than 20,000 entertainment-focused, dynamic pages organized around topics. These pages provide a centralized location to view aggregated information about specific subject matter from a wide variety of news sites and blogs including MTV, Los Angeles Times, Access Hollywood, New York Times, Village Voice and Just Jared.

Content Hubs–These comprehensive entertainment destinations are specifically dedicated to movies, television and celebrities. The pages combine programmed editorial with trending articles that feature news, videos and photos from various content partners. Additionally, each individual article within the hubs recommends related content and topics. Hubs focused on games, comedy, sports and fashion will be revealed in the coming months.

Personalized Stream–The new stream automatically learns what to feature based on a user’s preferences and habits, so they see more of what they love and less of what they don’t.

Recommendations–This feature recommends relevant topics and other fans based on algorithms that learn the type of content a user views, listens to or watches and from whom or where they discovered it.

‘Right now on Myspace’–This feature shows trending content in real time on Myspace, helps fans find recently added music and videos, and lets them listen or watch right from the interactive chart. Myspace uses these trends to inform recommendations that promote discovery and engagement.

Discovery Tab–This always accessible tab combines videos that friends are watching with what’s trending in real time on Myspace. Scroll to the top of any page and the new Discovery Tab drops down as a horizontal film strip.

My Stuff TabMy Stuff is an easy way to see all that’s personal to a user – their profile, photos, videos and uploaded content, structured as a drop-down menu with different content areas.

Badges–This feature recognizes and rewards curators and fans for their social activity around entertainment topics on the beta site and promotes them with badges – graphic icons that appear in a user’s stream.

New Brand Identity

Myspace has also introduced a new logo that captures its revamped brand identity and values. The bracket in the logo represents a space where people can express themselves, enabling users to personalize the logo and make it their own–just as they can throughout Myspace.

The newly-designed Myspace begins rolling out today in beta and will be available to all users worldwide by the end of November. New users will have immediate access to the beta site. For more information, please visit www.myspace.com/newmyspace

Digg has announced it is laying off 25 of its 67 staffers today, part of an attempt by the San Francisco social news discovery site to rationalize its costs.

In an interview with BoomTown this morning, CEO Matt Williams noted that “the burn rate is just too high” for the company.

“We need to reset, in terms of stategy and get back in a start-up mode,” said Williams, referring to the recent turmoil at Digg, related to management upheavals and product snafus. “The cost structure is not in line with our business.”

Earlier today, I reported that Digg’s Publisher and Chief Revenue Officer Chas Edwards was departing to take a similar job at a photo-tagging advertising start-up called Pixazza.

Edwards is just one of many such issues at Digg, where Williams seems to have stepped into a very big mess since he arrived just six weeks ago.

That includes dealing with a new version widely derided by its passionate and opinionated users, for which Williams quickly apologized.

“I knew it was going to be a big job in terms of a product turnaround,” said Williams. “I think the users love Digg and want to see us succeed and we ultimately let them down.”

Williams said his goal was to get to profitability in 2011, which required the employee layoffs.

From there, he said, “We will be on good footing to be more innovative.”

That would be a nice change of pace, given Digg’s fall from Web 2.0′s hottest start-up to one that seems only to falter.

Those stumbles have included a failed sale to Google, previous layoffs and general product drift.

Here is a blog post that Williams just put on the news aggregator’s site:

Just wanted to share an important development at Digg. Here is a copy of an e-mail that I sent to the staff today…

Team,

When I joined Digg six weeks ago, we set an immediate focus on improving the web site. We listened carefully to user feedback and started making changes to generate momentum in our business.

As I mentioned in one of our first all-hands meetings, another top priority was to take a hard look at the entire business, across product, sales, and operations. Through the time I have spent with each of you, I’ve been impressed by the commitment and enthusiasm you’ve shown. I’ve also learned a great deal about what is working well at Digg, and what is broken.

Many things are working well. The team is listening and acting quickly on the feedback from our passionate community. We’ve been able to deliver nimbly on the new platform, with over 100 bug and feature releases to the web site in the past two months. Our Diggable ads product has seen a notable increase in use by advertisers and clicks by users.

Unfortunately, to reach our goals, we have to take some difficult steps. The fact is our business has a burn rate that is too high. We must significantly cut our expenses to achieve profitability in 2011. We’ve considered all of the possible options for reduction, from salaries to fixed costs. The result is that, in addition to lowering many of our operational costs, I’ve made the decision to downsize our staff from 67 to 42 people.

It’s been an incredibly tough decision. I wish it weren’t necessary. However, I know it’s the right choice for Digg’s future success as a business. I’m personally committed to help find new opportunities for everyone affected by the transition. Digg’s Board members have also offered to help find placements within their portfolio companies.

Let’s please use today to show our sincere appreciation for our friends and colleagues who will be moving on. Tomorrow, we’ll go forward with a new strategy for Digg.

Matt

After Disney named two longtime Internet execs–Playdom’s John Pleasants and Jimmy Pitaro of Yahoo–as co-presidents of its Internet unit, BoomTown did a longer interview with CEO Bob Iger about the entertainment giant’s next Web moves.

I always enjoy talking digital with Iger–who is pictured above in an interview I did with him in 2006 at the fourth D: All Things Digital conference–since he has been one of the old media moguls who seems unafraid of the challenges of new media.

While appropriately wary, Iger acted early and often in exploring digital initiatives at Disney (DIS) that others in Hollywood’s and New York’s media worlds were loath to consider.

“I have tried to keep two obvious philosophies,” Iger said in a phone interview yesterday. “First, that our current business not get in the way of adopting new technologies, and, second, that our business belongs on these new platforms.”

Easy to say, of course, but it’s still nice to hear, given the longtime, incessant and ultimately wearying push-and-pull between those who make bucks making content and those who make bucks making technology.

“My premise is that technology is about an opportunity for us,” said Iger. “And we cannot will it away and should not…because you can’t stop these things from happening.”

That’s presumably the impetus behind the hiring of Pleasants and Pitaro (picture here, left to right).

With an assist by recent Disney board member and Facebook COO Sheryl Sandberg, Pitaro came to his attention earlier this year, Iger said.

Pitaro left his job as SVP of Media at Yahoo (YHOO) last week.

And Pleasants was CEO of Playdom, the online social gaming company that Disney acquired for $763 million in late July.

The pair, who will report directly to Iger as co-chiefs of the Disney Interactive Media Group, replace outgoing head Steve Wadsworth.

The shift is a big move by the entertainment giant and yet another attempt to clarify and bolster its Web strategy, which has had a long and often rocky history.

Under the previous regime of former CEO Michael Eisner, for example, Disney bought search engine Infoseek and tried to create a portal called Go.com.

That failed, and was one of many efforts to define the media company’s Web goals.

More recently, in 2008, Disney gathered most of its Internet properties within DIMG under Wadsworth.

Still, money-making has not been part of the mix. In its most recent quarter, DIMG lost $65 million on revenue of $197 million.

In the interview about the new structure, Iger said: “I think we’ve built a framework of assets, and now is the time to create a structure in a more focused way. In splitting the divisions, we can focus more on them better and in a way they deserve.”

He outlined the new set-up, which will have Pleasants focus on the online gaming and mobile landscape and Pitaro on the Web arena.

Iger said he felt Pleasants and Pitaro brought different backgrounds to the task, as well as longtime experience in the Internet arena.

He said that upon considering a fresh approach, he felt that Wadsworth was “spread too thin,” given all the various online arenas for Disney.

In fact, today, Disney owns a number of big Internet properties, including Disney.com, Family.com and Club Penguin, although there does not seem to be a particularly cohesive strategy among them.

Of course, that’s no surprise, given it is all part of a multifaceted media company with a variety of businesses.

Due to its powerful content assets, said Iger, it might be a perfect time for a more cogent plan. With the explosion of devices, such as the Apple (AAPL) iPad and others, the importance of cooperation between content and technology is more critical than ever.

“I think a lot of technology companies are really finally ready to handle more premium content in a way that is beneficial to all of us,” said Iger.

And, he added, it was time for Disney to get more involved in technology, which was the reason for the purchase of Playdom. The move has made it more a publisher than a licensor.

“If we wanted to get significant in size, we need the investment to be greater,” Iger said about the big payout to get into the fast-growing social gaming arena.

And that has meant less emphasis on console games, on which he said Disney had focused too much in the past.

No longer–now Iger said he has planted Playdom, as well as its purchase of the Tapulous music app start-up, in a spanking new facility in Palo Alto, Calif., right in the heart of Silicon Valley.

“We need to be part of the culture and world there in a significant way,” said Iger. “And I believe I have convinced the senior team within Disney that Playdom is a huge opportunity for them.”

That includes online gaming related to units such as sports at ESPN, as well as other Disney brands, such as the theme parks or Marvel, into Playdom games.

While Pleasants will run his part of the show from Silicon Valley, Iger said, Pitaro will work out of Los Angeles on Web initiatives and in upgrading the Disney online experience.

“We want to make Disney sites more of a community and entertainment center than a marketing hub,” said Iger. “Where is gets complicated is the levels of exclusivity and the other places we want to distribute our content.”

That includes being part of the premium Hulu online video site, as well as perhaps even creating a Disney-branded pay service, but also being open to working more with Netflix (NFLX).

And that means a multifaceted approach to all kinds of payment models for Disney online, from subscription to advertising-supported to pay-per-view.

“In certain areas, we will be very aggressive with our content and in others less aggressive, to the extent that each offers us revenues,” said Iger. “Obviously, where there is potential cannibalization, we will be a little more careful…but we are going to push forward.”

When asked about the most obvious management issue–the possibility of clashing with two heads of one division (MySpace, anyone?), Iger said that while there was overlap, he thought the jobs Pitaro and Pleasants had to do were also wide-ranging and different enough.

Plus, added Iger, “They both report directly to me and I am there to see to it that it works.”

In other words, as Disney continues to move forward into the digital future, the content and technology buck stops, as it should, at Iger.

Yesterday, after Disney named two longtime Internet execs–Playdom’s John Pleasants and Jimmy Pitaro of Yahoo–as co-presidents of its Internet unit, BoomTown did a longer interview with CEO Robert Iger about the entertainment giant’s next Web moves.

I always enjoy talking digital with Iger–who is pictured above in an interview I did with him in 2006 at the fourth D: All Things Digital conference–since he has been one of the old media moguls who seems unafraid of the challenges of new media.

While appropriately wary, Iger acted early and often in exploring digital initiatives at Disney (DIS) that others in Hollywood’s and New York’s media worlds were loathe to consider.

“I have tried to keep two obvious philosophies,” Iger said in a phone interview yesterday. “First, that our current business not get in the way of adopting new technologies, and, second, that our business belongs on these new platforms.”

Easy to say, of course, but it’s still nice to hear, given the longtime, incessant and ultimately wearying push-and-pull between those who make bucks making content and those who make bucks making technology.

“My premise is that technology is about an opportunity for us,” said Iger. “And we cannot will it away and should not…because you can’t stop these things from happening.”

That’s presumably the impetus behind the hiring of Pleasants and Pitaro (picture here, left to right).

With an assist by recent Disney board member and Facebook COO Sheryl Sandberg, Pitaro came to his attention earlier this year, Iger said.

Pitaro left his job as SVP of Media at Yahoo (YHOO) last week.

And Pleasants was CEO of Playdom, the online social gaming company that Disney acquired for $763 million in late July.

The pair, who will report directly to Iger as co-chiefs of the Disney Interactive Media Group, replace outgoing head Steve Wadsworth.

The shift is a big move by the entertainment giant and yet another attempt to clarify and bolster its Web strategy, which has had a long and often rocky history.

Under the previous regime of former CEO Michael Eisner, for example, Disney bought search engine Infoseek and tried to create a portal called Go.com.

That failed, and was one of many efforts to define the media company’s Web goals.

More recently, in 2008, Disney gathered most of its Internet properties within DIMG, under Wadsworth.

Still, money-making not been part of the mix. In its most recent quarter, DIMG lost $65 million on revenue of $197 million.

In the interview about the new structure, Iger said: “I think we’ve built a framework of assets, and now is the time to create a structure in a more focused way. In splitting the divisions, we can focus more on them better and in a way they deserve.”

He outlined the new set-up, which will have Pleasants focus on the online gaming and mobile landscape and Pitaro on the Web arena.

Iger said he felt Pleasants and Pitaro brought different backgrounds to the task, as well as longtime experience in the Internet arena.

He said that upon considering a fresh approach, he felt that Wadsworth was “spread too thin,” given all the various online arenas for Disney.

In fact, today, Disney owns a number of big Internet properties, including Disney.com, Family.com and Club Penguin, although there does not seem to be a particularly cohesive strategy among them.

Of course, that’s not surprise, given it is all part of a multifaceted media company with a variety of businesses.

Due to its powerful content assets, said Iger, it might be a perfect time for a more cogent plan. With the explosion of devices, such as the Apple (AAPL) iPad and others, the importance of cooperation between content and technology is more critical than ever.

“I think a lot of technology companies are really finally ready to handle more premium content in a way that is beneficial to all of us,” said Iger.

And, he added, it was time for Disney to get more involved in technology, which was the reason for the purchase of Playdom. The move has made it more a publisher than a licensor.

“If we wanted to get significant in size, we need the investment to be greater,” Iger said about the big payout to get into the fast-growing social gaming arena.

And that has meant less emphasis on console games, on which he said Disney had focused too much in the past.

No longer–now Iger said has planted Playdom, as well as its purchase of the Tapulous music app start-up, in a spanking new facility in Palo Alto, Calif., right in the heart of Silicon Valley.

“We need to be part of the culture and world there in a significant way,” said Iger. “And I believe I have convinced the senior team within Disney that Playdom is a huge opportunity for them.”

That includes online gaming related to units such as sports at ESPN, as well as other Disney brands, such as the theme parks or Marvel, into Playdom games.

While Pleasants will run his part of the show from Silicon Valley, Iger said, Pitaro will work out of Los Angeles on Web initiatives and in upgrading the Disney online experience.

“We want to make Disney sites more of a community and entertainment center than a marketing hub,” said Iger. “Where is gets complicated is the levels of exclusivity and the other places we want to distribute our content.”

That includes being part of the premium Hulu online video site, as well as perhaps even creating a Disney-branded pay service, but also being open to working more with Netflix (NFLX).

And that means a multifaceted approach to all kinds of payment models for Disney online, from subscription to advertising-supported to pay-per-view.

“In certain areas, we will be very aggressive with our content and in others less aggressive, to the extent that each offers us revenues,” said Iger. “Obviously, where there is potential cannibalization, we will be a little more careful…but we are going to push forward.”

When asked about the most obvious management issue–the possibility of clashing with two head of one division (MySpace, anyone?), Iger said that while there was overlap, he thought the jobs Pitaro and Pleasants had to do were also wide-ranging and different enough.

Plus, added Iger, “They both report directly to me and I am there to see to it that it works.”

In other words, as Disney continues to move forward into the digital future, the content and technology buck stops, as it should, at Iger.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Team,

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

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

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

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

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

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

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

Hilary

Jimmy Pitaro, who is leaving his job running the powerful media properties at Yahoo (YHOO), has taken a job as co-president of Disney Interactive Media Group, with John Pleasants.

Pleasants was CEO of Playdom, the online game company that Disney acquired for $763 million in late July.

(Both are pictured here, with Pleasants on the left and Pitaro on the right.)

The appointment of the pair, both of whom will report to Disney (DIS) President and CEO Robert Iger, is a big move by the entertainment giant.

And it looks like another large-scale attempt to clarify and bolster its Web strategy, which has had a long and often rocky history, and is the first major reset under Iger.

It is also against a backdrop of financial losses. In its most recent quarter, for example, DIMG lost $65 million on revenue of $197 million.

“I think we’ve built a framework of assets, and now is the time to create a structure in a more focused way,” said Iger in an interview this morning with BoomTown. “In splitting the divisions, we can focus more on them better and in a way they deserve.”

He outlined the new set-up, which will have Pleasants focus on the online gaming and mobile landscape and Pitaro on the Web and online advertising arenas. Iger said he felt Pleasants and Pitaro brought different backgrounds to the task, as well as longtime experience in the Internet arena.

Disney will need that going forward.

Under the previous regime of former CEO Michael Eisner, for example, Disney bought search engine Infoseek and tried to create a portal called Go.com. That failed, and was one of many efforts to define the media company’s Web goals.

More recently in 2008, Disney gathered most of its Internet properties within DIMG, under Steve Wadsworth. He recently stepped down from his job.

Today, Disney owns a number of big Internet properties, including Disney.com, Family.com and Club Penguin, although there does not seem to be a particularly cohesive or profitable strategy among them.

Of course, that’s not a surprise, given they are part of a multifaceted media company with a variety of businesses.

Because of those powerful content assets, in fact, now might be a perfect time for a more cogent plan. With the explosion of devices, such as the Apple (AAPL) iPad and others, the importance of cooperation between content and technology is more critical than ever.

News of the appointments of Pitaro and Pleasants was rumored earlier this week by Silicon Alley Insider and the Hollywood Reporter.

As an interesting aside, Iger said that he was introduced to Pitaro via Facebook COO Sheryl Sandberg, as well as her husband, David Goldberg. Sandberg is now on the board of Disney, and Pitaro came to Yahoo via Launch Media, which was co-founded by Goldberg.

More to come, obviously, but here is the official press release from Disney:

JOHN PLEASANTS, JAMES PITARO NAMED CO-PRESIDENTS,
DISNEY INTERACTIVE MEDIA GROUP

BURBANK, Calif., October 3, 2010–John Pleasants and James Pitaro have been named Co-Presidents, Disney Interactive Media Group (DIMG), it was announced today by Disney President and CEO Robert A. Iger.

John Pleasants, a well-respected new media executive whose career has included top jobs at digital commerce and game companies, will lead Disney’s multi-faceted digital games businesses, including online, console, social and mobile. He will also continue to run Playdom, the fast-growing social games publishing company acquired by Disney earlier this year.

James Pitaro, an experienced Internet executive known for consistently delivering great branded web experiences to consumers, will oversee Disney Online, the home of Disney branded web and social media sites.

The new structure at DIMG is intended to enhance the strategic focus and responsiveness of the company’s digital games and Disney Online businesses in a marketplace characterized by swiftly evolving consumer behavior and technologies. The structure is designed so that the two businesses can share consumer insights and technological resources and jointly take advantage of growth opportunities.

“Our rapidly growing Disney digital businesses will benefit greatly from the deep experience and distinct leadership skills shown by John and Jimmy,” Iger said. “John has shown incredible agility and skill in helping companies achieve success in the ever-shifting digital games business, while Jimmy has vast knowledge of the online world and has been hugely successful at creating and building audiences around branded online content.”

“Both have outstanding track records in anticipating trends and delivering to consumers creative, innovative and successful experiences and products,” Iger added. “As Co-Presidents, I’m confident they will make Disney’s digital content and businesses even more robust and successful.”

Pleasants, who will be based in the Bay Area, will oversee Disney’s overall games strategy and its global network of game development studios, including recently acquired mobile publisher Tapulous. The games group will include such popular online virtual worlds as Club Penguin and World of Cars as well as console and mobile titles.

Prior to joining Playdom as CEO in June 2009, he was President of Global Publishing and Chief Operating Officer of Electronic Arts Inc., where he led the company’s online and mobile business units and its strategic expansion into online and social games. He previously served as President and CEO of Revolution Health and CEO of Ticketmaster, which included Match.com, CitySearch.com and Evite.com.

“I am extremely excited to be working with the DIMG team, and our colleagues across Disney, to advance the mission of enlivening people everywhere through the world’s best interactive entertainment,” Pleasants said. “Bob’s vision and commitment to excellence in new media positions our organization to achieve great things.”

In leading Disney Online, Pitaro will be responsible for enhancing the consumer experience on the company’s numerous Disney-branded web and social media sites, including Disney.com, the number one global site for kids and families, and Family.com. Pitaro will also oversee Disney’s social media marketing agency, DigiSynd.

Pitaro joins Disney from Yahoo! Inc. where he was Vice President and Head of Media. In that role, he significantly expanded Yahoo!’s original video, branded entertainment and editorial content and pioneered using data to enhance the consumer web experience. Pitaro led the successful expansion of Yahoo! Sports prior to being named to lead all of Yahoo!’s media properties, including its news, finance, entertainment and lifestyle sites. Previously, Pitaro ran Business Affairs for online music site Launch Media and practiced law at several New York firms.

“I’m honored to be joining the Disney family and energized to start working with the DIMG team. I’ve admired Disney for as long as I can remember and am looking forward to bringing my experience to the company and partnering with John to advance our online businesses,” Pitaro said.

As Co-Presidents, they will be replacing former President Steve Wadsworth, who over many years established a firm foundation for DIMG’s growth. Pleasants and Pitaro will report to Iger and will co-manage DIMG enterprise functions, including business affairs, finance and human resources. They will assume their new roles on October 18, 2010.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yahoo declined to comment.

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

]]> http://allthingsd.com/20100928/exclusive-yahoo-exec-churn-continues-with-media-head-pitaro-ready-to-bolt/feed/ 4 http://allthingsd.com/20100719/dsts-alexander-tamas-talks-about-new-investors-new-investments-and-dealing-with-troubling-russian-stereotypes/ http://allthingsd.com/20100719/dsts-alexander-tamas-talks-about-new-investors-new-investments-and-dealing-with-troubling-russian-stereotypes/#comments Mon, 19 Jul 2010 18:15:07 +0000 Kara Swisher http://kara.allthingsd.com/?p=30699

After Russia-based Internet investor Digital Sky Technologies got $388 million in a stock-swapping deal with South Africa media giant Naspers–coming after an earlier $300 million investment from China’s Internet behemoth Tencent–BoomTown dialed up DST partner Alexander Tamas in London to interview him about the implications.

This developing international spiderweb of digital and media companies begged the question of what DST might do with all this new dough, especially since it has created quite a splash over the last year investing massive gobs of money in high-profile, social-focused U.S. Internet companies.

That has included, most prominently, social networking powerhouse Facebook, as well as Groupon and Zynga.

Actually, said Tamas, the money is for expansion of DST’s core businesses in Russia, Poland and the Baltics–in email, social networking, gaming and entertainment–at units such as Mail.ru, which was co-owned by Naspers and DST.

In essence, said many analysts, it will simplify its ownership structure, and could eventually lead to an IPO for DST.

For a 30 percent stake in DST and the $388 million, Naspers forked over its 39.3 percent stake in Mail.ru into DST.

“The idea was for us to be able to completely control our Russian portfolio,” said Tamas, part of a series of moves which included its recent purchase of AOL (AOL) instant messaging unit ICQ for $187.5 million in cash. “We wanted 100 percent at one company.”

Also a goal: To better link its services with those in China, owned by Tencent, which invested $300 million in DST in April, giving it just over a 10 percent stake.

Naspers, by the way, owns 35 percent of Tencent.

“It’s a pretty good dialog all around,” said Tamas (pictured here), linking companies with both global and local aspirations.

But it’s the global ambitions that have attracted the most attention to DST of late, which, Tamas noted, created some confusion and unfair maligning of the company.

Interestingly, although it is all mashed up on its Web site, DST itself is not technically the entity that maintains its investments in companies such as Facebook.

That would be DST Global, its international arm which directly hold the stakes. It is not part of the Naspers or Tencent deals.

Of course, both are run by the same people, especially DST CEO Yuri Milner, and DST has a stake in DST Global.

“Initially, DST did fund those transactions,” said Tamas. “But we wanted to separate these investments from the Internet company to give investors the clearer differentiation.”

As to its future investments, Tamas said the company will likely fund start-ups that “check the boxes,” including exponential growth and social virality.

That means only two investments annually, as opposed to 10.

He also said DST would continue to fork over large sums–its invested well over $100 million in each of its U.S. deals.

“There is a perception that we pay high prices,” admitted Tamas, who noted its Facebook investment is now valued at much more. “But we have a global outlook on what we are investing in.”

DST is also a believer in getting some of that financing in the hands of founders and early investors, since it relieves financial pressure to sell or go public before a start-up’s time.

“We want to give the companies we invest in a year or two run,” said Tamas. “That is the sweet spot.”

He said, after its U.S. flirtation, that DST is now looking more in Asia and Europe.

But, even with its expansion and getting investments from well-known media giant such as Naspers, Tamas said he is not sure DST can shake the continued questions about the sources of its funding, especially given some of its initial investors are clearly part of the much-maligned Russian business oligarchy.

“We always have to explain and justify all of Russia,” said Tamas defensively. “Obviously, Naspers did its due diligence, as have others, and they feel comfortable with DST.”

Still, Russian issues will remain a concern for the long term. As noted in a recent report by Bank of America (BAC) investment unit Merrill Lynch, for example, on the Naspers-DST deal:

“We are also concerned that DST’s dominance in the Russian internet space (close to 70% market/mind share) may attract the scrutiny of the Russian government. The precedent with the other leading Russian internet company Yandex, when the government got a veto on sale or a golden share, signals that the government may not welcome a full takeover of DST by Naspers or Tencent.”

“We know the issues,” said Tamas. “But the best digital companies going forward are going to have to understand and operate in different parts of the world that are not just in Silicon Valley.”

]]> http://allthingsd.com/20100719/dsts-alexander-tamas-talks-about-new-investors-new-investments-and-dealing-with-troubling-russian-stereotypes/feed/ 0 http://allthingsd.com/20090814/massive-aol-layoffs-not-imminent-but-top-to-bottom-cost-exam-definitely-in-process/ http://allthingsd.com/20090814/massive-aol-layoffs-not-imminent-but-top-to-bottom-cost-exam-definitely-in-process/#comments Fri, 14 Aug 2009 08:35:32 +0000 Kara Swisher http://kara.allthingsd.com/?p=17611

After a while–in a BoomTown mangling of the old cliché–if you are a nail, everything begins to look like a hammer.

So, it is probably inevitable that the next thing for much-beleaguered AOL staffers to start rumbling about is 2,000 people getting laid off next week, as was reported earlier this week by Silicon Alley Insider.

After all, the Time Warner (TWX) unit has a long history of whacking employees. So, it is easier to assume things will not be different under the regime of the latest CEO Tim Armstrong.

Except it’s not actually true that such massive cuts are in the offing, since–as many sources I spoke to said–Armstrong is only in the early part of figuring out what to do about the cost structure of AOL, after laying out a company strategy and rejiggering management recently.

While the end result of the cost-to-benefit analysis might, in all likelihood, mean layoffs of a chunk of its 7,000 employees–a larger number for its smaller operations.

And, after all, staff costs are one of the biggest line items in AOL’s budget–sources at the company said Armstrong will not rely on simply cutting jobs to craft a more attractive budget for its upcoming spinoff.

Still, there is obviously a lot of pressure on Armstrong to get the financials–which are still largely dependent on AOL’s declining, but money-generating, access business–looking pretty.

That access business did almost $2 billion in revenue last year–about half its sales–and it represented almost all its profits.

In contrast, AOL’s advertising business lagged, dropping hugely over the last several quarters.

Still, Armstrong has laid out a strategy that has included, in part:

Being a new kind of content giant, via a series of branded niche media sites, with about 500 full-time writers and editors and 1,500 freelancers; selling premium display advertising on these sites and strengthening its third-party self-service ad network business; finding a way to use its communications properties to redistribute traffic to other properties in a kind of virtuous circle.

There are also local, analytical and venture elements. But–for all intents and purposes–Armstrong’s plan is a content-and-advertising model, supported for now by the dwindling piles of cash from the access business.

That’s why, of course, costs are the next item on Armstrong’s to-do list.

“The cost structure is the last part of what was going to be dealt with, as Tim has told everyone,” said one person close to the situation about the former Google (GOOG) exec. “But, if it is slash-and-burn only, that would be pretty short-sighted.”

Perhaps, except that it is that exact tactic that has been business-as-usual at AOL for far too long.

]]> http://allthingsd.com/20090814/massive-aol-layoffs-not-imminent-but-top-to-bottom-cost-exam-definitely-in-process/feed/ 0 http://allthingsd.com/20090226/one-last-yahoo-reorg-missive-bartz-tells-employees-what-she-already-said-again/ http://allthingsd.com/20090226/one-last-yahoo-reorg-missive-bartz-tells-employees-what-she-already-said-again/#comments Fri, 27 Feb 2009 00:00:15 +0000 Kara Swisher http://kara.allthingsd.com/?p=10461

Goodness gracious, make it stop!

You must know by now how much BoomTown loves internal Yahoo (YHOO) memos. But this is getting ridiculous.

It’s been like a flash flood after a long drought at Sunnyvale HQ today, as Yahoo CEO Carol Bartz turns on the fire hose of a whole lot of communicating.

A lot. A real lot.

“I know you guys have reorg fatigue,” wrote Bartz, in the latest email to employees about the management reorganization finally announced this morning.

Also memo fatigue at All Things Digital HQ, if you can believe it.

Okay, I give, Carol! Well, for now, until another juicy internal memo you aren’t handing out freely lands in my inbox, for example, such as one about a search deal with Microsoft (MSFT). I’d like one of those to go, please!

But, in a gesture of a leak-free peace (can the drop-kick bounty be suspended for just today?), I am posting this last memo about the management reorganization from Carol “Chatterbox” Bartz.

(Although, I wish she would stop insulting the press, as she does below again. We are just doing our job–and very accurately, as it turned out–yet the jibes continue. Which is odd, frankly, given that Bartz has had mostly glowing coverage in the media her entire career.)

But Bartz did seem to leave a little mystery in the email still, as if even more rearranging were to come.

Writes Bartz (my bolding):

“As soon as decisions were made, I wanted you to know about them–even if that means we don’t have all the details nailed down yet”.

Wait, are the deets all nailed by Bartz’s productive hammer or aren’t they?

At least, thankfully, the note is capitalized properly, unlike the quaint no-caps stylings of former CEO Jerry Yang.

In any case, if you just can’t get enough, here is Bartz’s reorg blog from this morning and her new management structure memo too.

And here is her entire email on the reorg to employees:

From: Carol Bartz
Reply-To: Carol Bartz
Date: Thu, 26 Feb 2009 09:02:49 -0800
To: “all-worldwide@yahoo-inc.com”
Subject: Our New Organization

Yahoos,

As I’ve gotten to know Yahoo! over the past several weeks, I’ve developed a point of view on how our organization should be structured to set us up for success.

Our goal is simple: to consistently deliver awesome consumer and advertiser experiences, everywhere in the world we do business. Delivering great customer experiences is everyone’s job at Yahoo!–and each part of our organization will have a clear role in making that happen every day.

The timing of this announcement is important. As soon as decisions were made, I wanted you to know about them–even if that means we don’t have all the details nailed down yet. Yes, there’s been a lot of speculation in the media over the past few days…that’s been a little frustrating, but I’m not willing to speak publicly about decisions before they’re final. Today, they are–so I’ll lay out our new organizational structure for you now.

I know you guys have reorg fatigue. Hang in there–our intention is to leave this structure in place for two to four years. We’ll continue to make adjustments as needed, but we expect this core structure to stay put.

The structure outlined below will enable us to make big improvements in our product quality and operational efficiency. Part of that is simplicity–I’m frankly amazed at how complicated some things are here! We’ll have much clearer decision making and accountability. Product and regional teams will share responsibility for revenue targets and expense management, but we’ll have one P&L, for which I’m accountable.

We will also be in a better position to really listen to and understand our customers–both consumers and advertisers. I think we’ve gotten into the habit of focusing internally too much and we sometimes forget who we’re here to serve. You’ll notice that our management structure puts a renewed focus on the customer, with stronger feedback loops across the company…and they all come through me.

Also, as you know, no organizational structure is a substitute for collaboration, communication and trust. We’ll all need to evolve our behavior a bit–as teams and as individuals – to make this structure work the way it’s designed.

So here’s the overview, with the roles that will report directly to me. As you’ll see, some of our leaders are still to be determined. I know you’ll
want more detail than what’s below–you can learn more on Backyard: http://backyard.yahoo.com/ourorg .

Products: We’ve combined Tech and Product groups under one roof, led by Ari Balogh as EVP Products & CTO. Ari’s charter is to deliver global products that enable extraordinary consumer and advertiser experiences. Ari’s direct reports now include one leader for each product group–we’ve taken care of the “two in a box” problem.

One important note: The Connected Life team has been integrated into various parts of the new organization. Our mobile strategy remains a key part of Yahoo!’s focus going forward and all of our product groups will own mobile innovations. After leading Connected Life for four years, Marco Boerries has resigned from the company to spend more time with his family in Europe. We thank Marco for his important contributions at Yahoo!.

Regions: There are now two: North America and International. As I’ve said before, international growth is critical for Yahoo!, which has become too reliant on its U.S. business over the years.

The regions deliver Yahoo!’s products, programming and services to consumers, partners and advertisers in local markets. They will partner closely with the newly formed Regional Solutions & Products group in Ari’s organization to help drive a significant shift in how Yahoo! develops products for different geographies. The goal is to have global platforms on which regional product offerings are based.

The North American region–comprised of the U.S. and Canada–is led by Hilary Schneider. The leader of our International region, to be hired soon, will be responsible for a cohesive Yahoo! global strategy and seizing our international growth opportunities. Until we determine who’ll lead the International region, Rose Tsou (Asia), Rich Riley (Europe) and Keith Nilsson (Emerging Markets) will continue to report to me.

Marketing: Elisa Steele will be joining Yahoo! as our Chief Marketing Officer (CMO), effective March 23. Elisa joins us from NetApp where she was SVP, Corporate Marketing. Previous to NetApp, she held executive positions in marketing at Sun Microsystems. Elisa will oversee our global marketing strategy and provide direction for our marketing function. She’ll bring together the various Yahoo! marketing teams that have been spread across the company. Reporting into Elisa will be Brand Marketing, Audience Marketing, Corporate Communications, Insights, Policy & Privacy, Community Affairs and related central teams. I’m delighted to have Elisa joining the team.

Customer Advocacy: As I said, we can do much better in hearing the voice of the customer across Yahoo!, and incorporating what we hear into all of our work day-to-day. We have opened a search for a leader, who will oversee Customer Care and Ad Operations globally with the goal of improving how we support Yahoo!’s users and advertisers. In the interim, these teams will continue to report to Hilary.

Service Engineering & Operations: This new team is responsible for delivering common technology services at scale, including application management and infrastructure. No matter how cool our products are, the customer’s experience won’t be great unless our applications consistently deliver. Note that we’re bringing Service Engineering together as one group because these engineers bring expertise that is best applied horizontally. Leading this organization is David Dibble, who joined Yahoo! in December. David’s team also will be accountable for delivering more effective corporate IT systems.

Corporate Functions: Blake Jorgensen will be leaving Yahoo! and I am searching for a new CFO. Blake will remain through a transition with his successor, and I want to thank Blake for all of his great contributions to Yahoo! over the past two years. Mike Callahan will continue to lead our Legal team, and David Windley leads our Human Resources function. Joel Jones joins the team as my Chief of Staff.

So that’s the high-level view. These changes are effective immediately, but we’ve got more work to do in filling out the structure of each group. In the short term, this transition will be challenging for many of our people. My executive staff will be working with their organizations as quickly as possible to create further clarity. For example, we’ll need to recast budgets and adjust work areas so we have the right people working side-by-side.

I want to thank all of you who’ve shared your ideas and views with me since I arrived. Several leaders across Yahoo! came together to design this new structure–I’ve been very impressed with their dedication to the right outcomes, particularly how they’ve embraced the need to eliminate the silos that have been a drag on this organization for so long.

I think this organizational structure has the potential to solve many of the issues you’ve helped me better understand. Of course, new issues will emerge. But I know we’ll be aligned and nimble in tackling them together.

This is a tremendous, proud company with a powerful brand, great products and a bright future. Now’s the time to get more focused than ever on delighting our users and advertisers. Let’s show them how great Yahoo! can be.

Carol

]]> http://allthingsd.com/20090226/one-last-yahoo-reorg-missive-bartz-tells-employees-what-she-already-said-again/feed/ 3 http://allthingsd.com/20090226/new-yahoo-management-structure-the-entire-memo/ http://allthingsd.com/20090226/new-yahoo-management-structure-the-entire-memo/#comments Thu, 26 Feb 2009 19:46:10 +0000 Kara Swisher http://kara.allthingsd.com/?p=10432 Along with Yahoo CEO Carol Bartz’s external email earlier today, the company also outlined the new structure in another memo.

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

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

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

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

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

New International head TBD.

Bartz also sent an email to employees about the changes.

Here is the entire memo:

New Yahoo! Management Structure Overview

February 26, 2009

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

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

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

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

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

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

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

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

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

· These changes become effective immediately.

]]> http://allthingsd.com/20090226/new-yahoo-management-structure-the-entire-memo/feed/ 0 http://allthingsd.com/20090222/yahoo-media-unit-to-get-a-reorg-too/ http://allthingsd.com/20090222/yahoo-media-unit-to-get-a-reorg-too/#comments Sun, 22 Feb 2009 23:28:33 +0000 Kara Swisher http://kara.allthingsd.com/?p=10139

Besides the more massive management reorganization that new Yahoo CEO Carol Bartz could announce this week, as BoomTown reported on Friday, the Internet company’s powerful media arm might also see a drastic shift in management structure even sooner.

According to several sources inside the company, U.S. Audience SVP Jeff Dossett (pictured here) has been working on the changes for a while, part of an overall change in how Yahoo (YHOO) makes and delivers content. The new organization could be announced this week too.

Under a plan being considered, the media unit will be split into three parts: Vertical programming, network programming and search monetization.

It is not clear under this new set-up if Yahoo will keep its more traditional structure of having powerful general managers, each in charge of its big properties.

But that seems likely to be scaled back, at the very least, since the shift in management comes after some major recent changes in the way content is made, as was also reported here last week.

Already, the media group’s product development for all its major properties–such as News, Sports and Finance–is set to be moved to a central global product development organization at Yahoo’s HQ in Sunnyvale, Calif.

Until now, such development has been mostly done by individual media properties, many of which are located down south, in Santa Monica.

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

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

Dossett will remain overall head of media efforts, but there is a lot of speculation inside the group about who will head the three new parts of media unit. But that is still being worked out by Dossett and his boss, U.S. head Hilary Schneider, and is still not decided.

But several inside sources said that vertical programming is probably a lock to roll up under current Sports GM Jimmy Pitaro.

Former “60 Minutes” producer and News GM Neeraj Khemlani seems be the most likely candidate to head network programming, but that is not yet complete.

And Tim Mayer–who is now VP of search monetization and distribution–would probably remain in his job, with perhaps even more monetization duties added.

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