• Reuters, Tuesday, February 10, 2009 11 AM

New CEO Carol Bartz has begun the work of rebuilding Yahoo with some tough talk, although thus far, little has been said about the strategy she will adopt. In a memo leaked to Reuters, Bartz revealed that one area she is particularly bullish about is emerging markets. "While I was still at Autodesk, I traveled extensively through these emerging markets and am a strong, strong believer in the opportunities that are out there," she wrote. "Sure, there might be an economic slowdown, but that's where the largest percentage of Internet growth is going to be and we are going to play!"

Aside from a research and development group in India, and a strong presence throughout Asia, "Yahoo has plenty of room to grow overseas," Reuters says. In the fourth quarter, the Web giant generated roughly 26 percent of its revenue from overseas operations, compared to nearly 50 percent for rival Google. Yahoo provides a general figure for "international sales" but does not break out financial results for emerging markets. According to Reuters, Bartz recently met with Keith Nilsson, head of Yahoo's emerging markets group, to discuss her emerging market expansion strategy.

"There's an opportunity there for them in that in some of those markets, the competitive dynamic may not be as settled as it is here in US or in Europe," said Friedman, Billings, Ramsey & Co analyst Heath Terry.

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