Changes At Yahoo! Inc. (YHOO) See Tumblr Head No Longer Report To Mayer


Tumblr seems to have hit rock bottom as a recent management re-organization by Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer, clearly shows everything is not alright at the $1.1 billion acquisition. Mayer has cracked the whip, consequently promoting Simon Khalaf to a senior vice president role for overseeing the company’s consumer product, made of the Yahoo home page and all the portals related to movies, sports and apps.

Tumblr Woes

Under the new changes, Tumblr chief executive, David Karp, seems to have been demoted, as he will report to Mr. Khalaf rather than Mayer herself, although he will remain part of the executive team. The demotion slightly reflects the struggles Tumblr has encountered since it was acquired, as the unit struggles to broaden its appeal and make substantial gains in the advertising business.

The management change reflects Mayer’s belief and confidence in Khalaf, who has turned Flurry into a key entity of Yahoo! Inc. (NASDAQ:YHOO)’s business, especially in the push for more ad revenue. The unit was bought for $300 million, focusing on offering data and advertising services to developers. Flurry is doing a lot in encouraging developers to use its tools, at the expense of Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB).

Video Prospects

Mayer also announced that Mike Kerns, a senior vice president, will be leaving the search giant to pursue entrepreneurial opportunities, having overseen Yahoo’s homepage and verticals. Part of the new changes will also see Adam Cahan overseeing Yahoo! Inc. (NASDAQ:YHOO)’s Video efforts, having previously worked on spearheading the company’s mobile efforts.

Video remains a key aspect of Yahoo! Inc. (NASDAQ:YHOO)’s business, as the company looks to compete better against the likes of Facebook and Google, while focusing on improving user interface and product design. Jeff Bonforte has also been accorded the opportunity of spearheading Yahoo’s efforts in photo sharing service, Flickr, while being the head of messaging and email products.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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