Yahoo! Inc. (NASDAQ:YHOO) Shuffles Tumblr, Web-Video Leadership

Yahoo! Inc. (NASDAQ:YHOO)’s Marissa Mayer is fiddling with the management yet again to bring fresh leadership talent to blogging site Tumblr and Web video, two areas where she has advocated more growth.

Have analyst identified a ongoing trend in YHOO?

Adam Cahan, the executive responsible for managing mobile products is reassigned a leadership role for a new group focused on video according to a company-wide memo dispatched by Mayer on Friday, April 10, 2015.

David Karp faces demotion

Among other things, the founder of Tumblr, David Karp who transferred it to Yahoo for $1.1 billion in 2013 has been demoted. When the deal was struck, Mayer had committed to letting the popular website operate autonomously under Karp’s governance.

Karp would no longer report to Mayer. Instead, he will have a new boss namely Simon Khalaf, who was inducted into Yahoo when the firm took over mobile analytics provider Flurry last year. Khalaf has been elevated to the position of the senior vice president responsible for managing the home page and Tumblr as per the memo.

Mike Kerns set to leave

In another development, the former boss of Yahoo’s home page, Mike Kerns is exiting the company according to a Twitter post by him on Friday, April 10, 2015. Kerns was absorbed into Yahoo post the company’s acquisition of his startup, Citizen Sports in 2010. He made his way up to the rank of senior vice president and oversaw redesigns of many of the firm’s most prominent sites such as its home page, news, finance portals and more.

The managements are ostensibly as Mayer is facing pressure to rein in spiraling costs. Yahoo has reduced its workforce by 700 to 900 employees since in October, mainly in offices located outside the US.

Yahoo! Inc. (NASDAQ:YHOO) is expecting growth in areas such as mobile, video and Tumblr’s native ads. Presently it is experiencing a decline in its core business of display ads on desktop computers. Till now solely ads on mobile devices have generated significant new revenue to the tune of $254 million.

Yahoo set to compete with Google’s YouTube

Mayer is counting on Mr. Cahan, who helped drive mobile revenue growth to emulate the success story for video as well. Notwithstanding significant investments made by Yahoo in video, the company has faltered in its attempt to transform Yahoo Screen into an online video service to match Google Inc (NASDAQ:GOOGL)‘s YouTube as desired by Mayer.

David Barry

David Barry

Barry is a senior journalist at Us Markets Daily. He reports, shoots and edits many of his own stories by himself.