Yahoo hires former Google executive Marissa Mayer as the new CEO – Part 3

Mayer is expecting a baby, due in October. However, she said that her maternity leave will be a few weeks long and she will work throughout that time.

The dedication shown by the new CEO resulted in a share price bump in after hours. Yahoo announced the appointment after Monday’s close of business but the stock price went 2 percent up in the afterhours. The company is expected to release its quarterly income on Wednesday.

Yahoo posted $1.077 billion in revenues this year, representing just a 1 percent increase over the year-earlier period. This partly due to 4 percent decrease in advertisement revenues and 8 percent increase in search revenues.

Marissa is not the only Google employee who moved to Yahoo. The company has landed a number of Google executives at Sunnyvale in the past few months. Chief among them is Michael Barrett, chief executive of online advertisement at Google. He now works as executive vice president and chief revenue officer at Yahoo. He became a part of Google Empire when his company Admeld was acquired by the search engine last year.

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Including Google search, news and images, she was one of the main character behind more than a 100 products and features launched by Google.

Google CEO Larry Page wished Mayer the best of luck in her future endeavours: “Since arriving at Google just over 13 years ago as employee No. 20, Marissa has been a tireless champion of our users. She contributed to the development of our Search, Geo, and Local products as well as many other product areas. We will miss her talents at Google.”

Mayer’s appointment as the leader of the company is a clear example that Yahoo wants to make an aggressive comeback into the market. Putting together the grave situation Yahoo is in, Mayer’s appointment and her credentials give clear hint that the company is trying to focus on the existing products and services and expanding them more into the consumer market.

“We firmly believe that if we want to be in the media and technology industries, we have to be in both aggressively,” Levinsohn told investors in a meeting last week. “Providing compelling content and relevant advertising for consumers is a real opportunity, and a white space that I think Yahoo can own.”

However, for some experts the new hiring has been a very aggressive choice. According to Citigroup’s Mark Mahaney, Mayer is the perfect choice for rapid growth but Yahoo’s condition is a little different. There are dents in its reputation now after a series of controversial hiring and firing.

“Arguably, Yahoo has been mismanaged for 5 plus years, with plenty of blame to go around,” Mahaney wrote in a research note. “The clearest evidence of mismanagement is the lack of any Free Cash Flow growth for multiple years, despite the clear secular growth drivers of Internet advertising. What we are a bit worried about is that by selecting Ms. Mayer, Yahoo is explicitly pursuing an aggressive and bold growth strategy, whereas we believe a value strategy might be more appropriate.”

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Posted by Usman Khalid on Jul 18 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.