A recent filing with the United States Securities and Exchange Commission reveals that newly appointed Yahoo (YHOO) CEO Marissa Mayer will potentially earn $100 million over the next five years. The sum is undoubtedly huge, but the tasks that lie ahead for Yahoo’s new chief are daunting at best. Now that Mayer has taken the reins, the world — or, perhaps more accurately, Yahoo employees and investors — waits with bated breath to see what sweeping changes might come under Mayer’s rule. The answer, for the time being, is none. “Please do not stop. You are doing important work. Please don’t stop,” Mayer told Yahoos in a memo obtained by All Things D. “If you have questions or concerns about whether to continue or not, please ask. However, with the exception of a few things that might heavily constrain us in the future, the answer is most likely: ‘Yes, keep moving.’ ” The rest of the memo is linked below, just beyond an interstitial ad. More →
Yahoo on Tuesday reported its second quarter earnings, beating Wall Street’s earnings expectations of $0.23 per share on $1.096 billion in revenue. The firm posted earnings of $0.27 per share on sales that narrowly missed analysts’ consensus at $1.08 billion. Yahoo’s search revenue came in at $461 million, down 1% year-over-year, while display revenue was up 2% year-over-year to $535 million. Yahoo’s earnings come one day after the company announced that former Google executive Marissa Mayer was its new CEO and president. “In the second quarter, non-GAAP earnings per share exceeded consensus and both display and search revenue ex-TAC showed modest growth,” said Tim Morse, chief financial officer. “We also moved aggressively with new strategic agreements with Alibaba and Facebook and announced several new partnerships including CNBC, Clear Channel and Spotify.” Yahoo’s press release follows below. More →
($YHOO) Yahoo on Monday named Marissa Mayer the company’s new president and CEO. Mayer was one of the earliest employees with Google, joining the Internet giant in 1999 and becoming the company’s first woman engineer. “I am honored and delighted to lead Yahoo!, one of the internet’s premier destinations for more than 700 million users,” Mayer said in a statement. “I look forward to working with the Company’s dedicated employees to bring innovative products, content, and personalized experiences to users and advertisers all around the world.” Yahoo’s co-founder David Filo said, “Marissa is a well-known, visionary leader in user experience and product design and one of Silicon Valley’s most exciting strategists in technology development.” Mayer will begin her new job on July 17th. Yahoo’s press release follows below. More →
Security firm TrustedSec has found that more than 450,000 passwords have been exposed after a successful hack into Yahoo’s Voices website, the Guardian reports. Voices, formerly known as Associated Content before being purchased by Yahoo in 2010, is a news and analysis site that relies on user-generated content. The big problem with this particular hack, the Guardian says, is that “the passwords for the accounts were not encrypted — meaning that any hacker could scoop up the emails and immediately start using them against other services, including Yahoo Mail.” TrustedSec says the hack was executed using SQL injection attacks that are commonly used to hack into databases, and security expert Anders Nilsson has an analysis of the data that is linked below.
Update: Yahoo confirmed the breach and provided the following statement to TechCrunch: More →
Yahoo sued Facebook over patents; Facebook sued Yahoo over patents; Yahoo and Facebook worked it out. Long-time partners Facebook and Yahoo have come to an agreement to launch a new advertising partnership, extend existing distribution agreements and settle all patent claims each company has levied against the other. ”We are excited to develop a deeper partnership with Facebook, and I’m grateful to Sheryl and her team for working hard together with our team to develop this dynamic agreement. We are looking forward to building on the success we have already seen to provide innovative new products and experiences for both consumers and sponsors,” said interim Yahoo CEO Ross Levinsohn. “Combining the premium content and reach of Yahoo! as the world’s leading digital media company with Facebook provides branded advertisers with unmatched opportunity.” The full press release follows below. More →
As Yahoo’s struggles continue, the company is looking to cut costs and dig up cash wherever it can. Yahoo announced plans last month to lay off 2,000 workers, or nearly 15% of its staff, and before that it filed a “puzzling” patent lawsuit against long-time partner Facebook. Now, Yahoo will sell half of its 40% stake in China-based retail giant Alibaba. Led by Chinese Internet entrepreneur Jack Ma, Alibaba will repurchase part of Yahoo’s holdings in the e-commerce firm for $7.1 billion as it prepares to take the company public. The deal, which was announced in a joint statement on Monday, will see Yahoo sell half its stake in Alibaba for $6.3 billion in cash and as much as $800 million in new preferred stock. Yahoo purchased its 40% stake in Alibaba in 2005 for $1 billion.
Microsoft has hired 14 Yahoo researchers for its brand new New York research lab, AllThingsD reported. The hires come after Yahoo made significant layoffs last month to its research and development unit. According to Jennifer Chayes, who manages Microsoft Research in New England and New York, the researchers were’t hired as a package deal. “I don’t feel like we hired a group; I feel like we hired 15 amazing individuals, some of which became available because there were some problems at Yahoo,” she said. The software giant has an extensive research division that includes some 850 Ph.Ds, and the New York City lab will be the company’s 13th global office. More →
Yahoo on Wednesday confirmed plans to lay off more than 2,000 employees as part of new cost-cutting efforts. The Internet giant currently employs approximately 14,000 full-time workers and several thousand more contractors. The workforce reductions will be spread across a number of units within Yahoo including its product division, local business unit, marketing division and research and development division. “Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.” Yahoo plans further cuts in the coming months, and the company’s full statement on the layoffs follows below. More →
Yahoo filed a massive patent infringement lawsuit against Facebook last month, claiming that Facebook’s News Feed, advertising methods, privacy settings and more infringed on its intellectual property. Facebook on Tuesday fired back at Yahoo with a countersuit, accusing the company of infringing upon 10 of its patents. Among its claims, the social networking giant says Yahoo’s Flickr photostream and its recent activity feature infringe a Facebook patent related to generating a personalized feed of stories on a social network. ”While we are asserting patent claims of our own, we do so in response to Yahoo’s short-sighted decision to attack one of its partners and prioritize litigation over innovation,” Facebook general counsel Ted Ullyot said in a statement to Reuters. Facebook, the world’s largest social networking site, is in the process of its initial public offering that is expected to raise as much as $10 billion. More →
Yahoo has filed a massive patent infringement lawsuit against its business partner, Facebook, AllThingsD reported on Monday. The search company claims that Facebook’s News Feed, advertising methods, privacy settings and more infringe its patents. “Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology,” Yahoo’s lawsuit said. The company claims that Facebook has been “free riding” on Yahoo’s intellectual property and royalty payments alone will not be enough. Read on for more. More →
Nikesh Arora, Google’s SVP and Chief Business Officer, will run Motorola once the Google acquisition closes later this year, according to rumor published by Business Insider. Arora ran the company’s international business for Eric Schmidt, taking over the global business after the former CEO stepped down. Arora has reportedly been “agitating” for a CEO position and was included on a short list of candidates to head Yahoo. It is possible, however, that a promised CEO slot at Motorola could have prompted Arora to continue with Google. The rumor further notes that Dennis Woodside, Google’s current head of U.S. sales, will take over Arora’s current position. More →
Yahoo has frozen its hiring process and may even consider layoffs according to a new report. The news was revealed by AllThingsD on Thursday, which wrote that the choices were made ahead of expected weak fourth quarter earnings. Yahoo isn’t considering mass layoffs, however; instead, AllThingsD said they are likely to be “small and selective” if they happen at all. Yahoo experienced a bit of turmoil earlier this week when co-founder, former CEO and board member Jerry Yang resigned from the company. AllThingsD said other board members may be considering leaving the company, too. Yahoo will report its fourth quarter earnings next Tuesday. More →
Co-founder and former CEO Jerry Yang has resigned from all of his positions with Yahoo, the company announced in a press release on Tuesday. Yang co-founded Yahoo in 1995 with David Filo and served as a member of the Board of Directors since March 1995. Yang was also the company’s CEO from June 2007 to January 2009, until he was replaced by Carol Bartz. ”My time at Yahoo!, from its founding to the present, has encompassed some of the most exciting and rewarding experiences of my life,” said Yang in a statement. “However, the time has come for me to pursue other interests outside of Yahoo! As I leave the company I co-founded nearly 17 years ago, I am enthusiastic about the appointment of Scott Thompson as Chief Executive Officer and his ability, along with the entire Yahoo! leadership team, to guide Yahoo! into an exciting and successful future.” Yahoo chairman Roy Bostock praised Yang, calling him both a visionary and pioneer. “We appreciate Jerry’s comments and share his enthusiasm for the company’s prospects. With Scott Thompson leading an outstanding team of Yahoos to deliver innovative products and an engaging customer experience, Yahoo!’s future is bright,” said Bostock. Yahoo’s press release follows below. More →