Harsh Criticism of Yahoo
September 24, 2015
Kill dear old Yahoo? IBTimes reports on some harsh words from an ivory-tower type in, “NYU Professor: Yahoo Ought to Be ‘Euthanised’ and Marissa Mayer’s Pregnancy Saved her Job.” It seems marketing professor Scott Galloway recently criticized the company, and its famous CEO, in a televised Bloomberg interview. In his opinion, any website with Yahoo’s traffic should be rolling in dough, and the company’s struggles are the result of mismanagement. As for his claim that the “most overpaid CEO in history” only retains her position due to her pregnancy? Reporter Mary-Ann Russon writes:
“Galloway says that Yahoo would not be willing to face the public backlash that would come from firing a woman in such a position of power who has just announced she is pregnant.
“This is not a stretch since there are still far fewer women in leadership positions than men – as of March 2015, only 24 of the CEOs in Fortune 500 companies are women – and the issue with how companies perceive family planning remains a sore point for many career-minded women (Read: Gamechangers: Why multimillionaire ‘mom’ Marissa Mayer is damned if she does and damned if she doesn’t).
“However, Galloway also pointed the finger of blame for Yahoo’s woes at its board, which he said has been a ‘lesson in poor corporate governance,’ since there have been five CEOs in the last seven years.”
Though Yahoo was a great success around the turn of the millennium, it has fallen behind as users migrate their internet usage to mobile devices (with that format’s smaller, cheaper ads). Though many still use its free apps, nowadays most of Yahoo’s revenue comes from its Alibaba investment.
So what does Galloway recommend? “It should be sold to Microsoft,” he declared. “We should put a bullet in this story called ‘Yahoo’.” Ouch. Can Yahoo reverse their fortunes, or is it too late for the veteran Internet company?
Cynthia Murrell, September 24, 2015