Yahoo CEO Says 6% Operating Margin "Unacceptable"
29 October 2009 - 3:21AM
Dow Jones News
SAN FRANCISCO (Dow Jones)-Yahoo Inc.'s (YHOO) Chief Executive
Carol Bartz said Wednesday that the Internet giant's 6% operating
margin is "unacceptable" and she vowed to regain the respect the
company has lost over the past several years.
"Today is the beginning of a journey back to respect," she said
in an introductory presentation during the company's Analyst Day
event webcast over the Internet.
Referring to ongoing questions about Yahoo's vision and
direction, Bartz reiterated that the company shouldn't be thought
of as a search or display company. She said Yahoo is a broad-based
Internet technology company that competes with a wide range of
content sites, including social network Facebook, news provider
CNN, sports titan ESPN and gossip page TMZ.
"We wake up every morning with passion to beat every one of
them. And you know what? We usually do," she said.
Chief Technology Officer Ari Balogh said Yahoo's model is very
simple: Engaging its broad audience and gathering insights about
their behavior so the company can provide them with better online
experiences and better targeted ads.
Yahoo last week reported that its third quarter profit surged
due to cost cutting and asset sales, even as revenue fell 12%
compared with a year ago. Relieved analysts said the results
indicated that Bartz has made some headway since taking over the
company in January.
But Bartz, who was named CEO amidst the worst advertising slump
in decades, still has to prove she can reinvigorate the struggling
Internet giant and convince investors, employees and customers that
she has a strong vision for the company.
-By Scott Morrison; Dow Jones Newswires; 415-765-6118;
scott.morrison@dowjones.com