Carol Bartz blasts "boring Yahoo"

 

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Posted on 30 Oct 2009 at 08:42

Yahoo's chief executive has blasted her company for becoming boring, and promised to triple operating profit margins in the next three years.

During a presentation to analysts on Wednesday, Carol Bartz described Yahoo's 6% operating margin in the third quarter as "pathetic" and vowed to achieve margins between 15% and 20% by 2012.

Bartz claimed to have already fixed the shortcomings that had plagued the company in the past, and touted its large online audience and ties to advertisers as keys to its comeback.

We're a 14-year-old internet company that somehow got boring

"Today is the beginning of a journey back to respect," Bartz said. "We're a 14-year-old internet company that somehow got boring."

Since Bartz took over as CEO in January, the company has cut 5% of its staff and shed several businesses. She's further promised to invest in editorial staff to produce more original features and tweak its online products to keep users on the site longer and boost advertising revenue.

Since Yahoo revamped its homepage in July, page views have increased 9% while time spent on the site has increased 20%, according to Tapan Bhat, senior vice president for integrated consumer experience. Click-throughs on the main ad on the front page have increased 10%, he said.

In July, Yahoo announced a ten-year deal to let Microsoft provide its search technology, though Bartz has stressed the company remains focused on internet search as a crucial product for Yahoo users and advertisers.

Author: Stuart Turton