Yahoo to redefine three business units

Absrtact: After replacing board members, suing Facebook for patent infringement and mass layoffs, Yahoo's new boss, Scott Thompson Scott Thompson, finally unveiled his restructuring plan to revive Yahoo. Thompson's memo released in the United States time of Tuesday

After replacing board members, suing Facebook for patent infringement, and mass layoffs, Yahoo's new boss, Scott Thompson Scott Thompson, finally unveiled his restructuring plan to revive Yahoo.

In a memo released in Tuesday, Thompson said that starting May 1, Yahoo will be restructured into three departments, and will reassign seven Yahoo executives to host the three branches of the branch business, Yahoo's business focus will be again on the business.

Re-dividing the three business units

Thompson issued an internal memo to the company's employees in Tuesday to disclose details of Yahoo's restructuring.

The memo shows that starting in May this year, Yahoo will be split into three new departments, is responsible for the data center, Internet infrastructure support, advertising platform of the technical department, responsible for the advertising business of the regional departments, from the Americas, Asia-Pacific, Europe and the three sub-departments, and responsible for Web content, Internet search, mail services, multimedia , Business consumer business unit. In addition, Yahoo will set up three support departments for financial, legal and human resources.

Jacob Tiger reassigned seven senior executives to three major divisions, including the most important consumer business unit, which will be responsible for Sam Shraugher, the newly-departing vice president of Ayp Al Global product and experience.

In the memo, Thompson said the top priority is to make the core business a success, so that Yahoo can seek new growth opportunities, thus increasing commission and service fee income. It also means that Yahoo is focusing its business on business rather than product development or E-commerce.

No direct effect on Ali repurchase

Under the new architecture, Thompson plans to get more revenue from Yahoo's innovative and competitive offerings. But the industry believes that Thompson has not proposed a subversive change, Yahoo still retains the sales, technology and products of the three major categories.

Li, chief analyst at Analysys, says the new structure has three departments that are relevant, and that the current break-up is more just an adjustment of the organization's business. "Whether Yahoo can revive, depends on the co-ordination between the three." "She believes that the consumer business sector is mainly focused on the promotion of business effects, regional departments focus more on Europe or the United States Yahoo's advertising business, while the technology sector focus on advertising technology platform."

In addition, for the sale of Ali Group's interest outside the plan, foreign media said Yahoo, SoftBank and Ali Group has restarted informal talks to negotiate Yahoo's stake in Yahoo Japan and Alibaba majority stake in the sale will. Tim Morse, the C-FO, who once served as Yahoo's interim CEO, was confirmed to be the successor of Jerry Yang as a director of Yahoo's Alibaba Group.

Li that from now on Yahoo restructuring did not involve Ali Group, will not have a direct impact on repurchase. Yahoo will report its first-quarter earnings this month 17th.