Is Yahoo Selling Or Restarting

The news of Carol Bartz's firing may have been for lack of growth of Yahoo's revenue and brand, but the hiring of "strategic advisers" does not sound promising either. My brother-in-law said something to me this weekend that made me sit up and think. As a hedge fund guy, he noted that anytime a company brings in a "suit", the attention is never on innovation, but rather on reducing costs to improve profits. He said that "suits" don't take risks because they are only focused on the ROI. And he cites great examples of leaders and companies that take risk without worrying about the return and when they leave, the lack of risk leads to lack of change and a declining future. When My Space founders sold to News Corp, those entrepreneurs left and My Space fell into disrepair. Apple's growth has been the result of Jobs taking risks without worrying about research and returns. It seems instinct does matter.

So what will the future of Yahoo be post Bartz? I am not saying that she was that kind of leader, but with her gone, can "strategic advisers" be risk takers or more likely "suits". According to AllthingsD, "Yahoo is preparing to hire investment bankers and other strategic advisory firms, said sources close to the Silicon Valley Internet giant, as it seeks to figure out what to do next at the company." Other reports have Yahoo putting itself up for sale. That seems to be a likely outcome for investment bankers. New leadership would more likely reinstall in Yahoo its adventurous spirit and risk-taking.

"The company will also be conducting a search for a CEO, which will be difficult because any new top exec will want to be part of such a company-wide review." Should that be the case, that leader must focus on future not ROI, on innovation, not simple profits, on growth strategies, not expense reductions. Yahoo is a strategic challenge before it, but has opportunities galore to succeed. Take risks, hire out-of-box, use content to drive great partnerships and re-establish itself as the great aggregator of content. Don't sell, buy.