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A Skeptic's View On How Google Will Save Yahoo

Mayer-0513bYahoo's more than 700 million users now have the expertise of former Google engineer Marissa Mayer behind search and services. The appointment comes as a surprise to many.

At one point search industry insiders suggested that Google and Microsoft would invest in Yahoo to support search efforts and save the company from bankruptcy. Rather than make that financial investment by buying the company's services, one of Google's influential leaders took the helm.

Did Mayer accept the CEO appointment in the name of fair competition? A failing Yahoo search business would leave the industry with two major engines -- Google and Microsoft -- and piecemeal an Internet giant with the potential to make a comeback. How could such an influential engineer easily transition from one search engine to another without bringing along more than a decade of knowledge and inside information?

The CEO position at Google might not have been an option for Mayer, 37, so she will try to save Yahoo instead. Mayer's background should support the company's search engine marketing alliance with Microsoft and social partnership with Facebook. Let's play devil's advocate. Perhaps Yahoo's board offered Mayer the job for her expertise in acquisitions. Mayer played an important role in building Google Places and acquiring Zagat. She also could lead in dissolving the company one division at a time.

I find it difficult to believe that Google co-founders Larry Page and Sergey Brin wished Mayer well as she walked out the door and took 13 years of intellectual property along with her, unless they were concerned about Yahoo's demise. Non-compete policies might not have been in place at the time she was hired at Google.

Mayer began her career at Google in 1999, as the company's first female engineer. She trained at Stanford. For about 10 years, Mayer spearheaded the company's core search business before moving on to location and local services, overseeing more than 1,000 engineers and product managers. In June, she took a seat on the board at Walmart Stores, Bentonville, Ark.

Perhaps Mayer can help boost Yahoo's search market share. She holds more than a decade of secrets at the world's most successful search engine. Google took 66.8% U.S. market share in June, while Microsoft rose 0.2 percentage points to 15.6%. Yahoo's market share fell 0.4 percentage points to 13%, according to comScore.

Yahoo's struggle to rebound from internal turmoil, falling stock prices, and dwindling search market share took the company through five CEOs in as many years. Since 1995, the company has had at least seven permanent and interim CEOs. Tim Koogle was replaced by former co-CEO at Warner Bros. Terry Semel in 2001. Co-founder Jerry Yang became CEO in 2007, resigning in 2009, giving the reins to Carol Bartz, who got fired in 2011. The company's CFO Tim Morse stepped in as interim CEO. Scott Thompson took over, but resigned in May 2012 after questions emerged regarding whether he lied about his academic credentials. Ross Levinsohn stepped in as interim.

This time it's different. Mayer will make change possible and inspire confidence, according to Mogreet CEO James Citron. "No one knows what Yahoo stands for today, and there have been questions as to how to lead them back in a positive direction," he said.

3 comments about "A Skeptic's View On How Google Will Save Yahoo".
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  1. Esther Dyson from EDventure, July 17, 2012 at 1:20 p.m.

    I don't think corporate secrets are the issue here. It all comes down (or up) to Mayer's ability to manage, inspire and execute. In the end, Yahoo! needs motivated people and strategy, not algorithms. And I would guess that Sergey and Larry do genuinely wish her well; it's a lot more satisfying (and healthy) to compete with strong competitors than with wounded giants doing stupid things in desperation.

  2. Chris Moise from Consultant, July 17, 2012 at 1:46 p.m.

    "Non-compete policies might not have been in place at the time she was hired at Google."

    Non-competes are unenforceable in the state of California to allow talent to move between companies. So it would have been irrelevant relating to a move from Google to Yahoo. However, confidential info still needs to be protected from the new employer.

  3. Walter Sabo from SABO media, July 17, 2012 at 2:32 p.m.

    It's about the show.

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