When Jim Lanzone took charge Yahoo In 2021, he saw more than just a traditional Internet brand attacked by years of corporate mistakes – he saw an opportunity. Lanzone is a continuous turnover expert who works at Ask Jeeves, CBS Interactive and Tinder, and Lanzone sees Yahoo as a “turnover beluga”, a company with deep roots, loyal users and product engines that require serious overhauls.
Lanzone in with wealth Lions in Cannes. “We have to rebuild the team and the company from scratch.”
It’s now three and a half years ago, what he calls “multi-phase turnaround (to rebuild as innovation to rebuild”) is executing a transformational strategy that touches on everything from product development to cultural renewal, all based on a simple belief that a digital media brand is only as good as the product offers.
Product first, forever
The core of Lanzone philosophy is the focus on product quality.
“Everything for major consumer Internet companies has to start with the product,” he said.
Yahoo still has category leadership in properties like Yahoo Finance and Yahoo Fantasy, which refreshes all the major products it offers.
“Every pixel on Yahoo has been new for the past nine months,” Lanzone noted. “Every product we operate… is brand new.”
He believes that the company can only rekindle the brand’s feelings after the user experience is repaired.
“You can’t do that until you fix the product first,” he said. “Especially at a consumer internet company that lives in, breathing products people use every day.”
Yahoo poaching talents want to “run to the fire”
Conversion is not limited to the user interface. Lanzone overhauled Yahoo’s structure and recruited top talents from Silicon Valley, many of whom, like him, had no shortage of opportunities elsewhere.
“It surprised people at how many great people want to run to the fire on Yahoo fire,” he said. “We brought a great team and I think that quickly gained a lot of credibility.”
Those who jumped high include Chief Marketing Officer Josh Line Paramountand Rob Wilk, Yahoo Global Consumer Sales Head Break.
This credibility is crucial for Yahoo’s second act under the leadership of a private equity firm Apollo Global Managementit bought Yahoo from Verizon for less than $5 billion in 2021, 96% below its peak estimate of $125 billion.
Yahoo is far from operating sunset, but has become Apollo’s return transaction is the fastest.
“The script here is growing,” Lanzone said. “We’re building here, not just trying to extract value from parts, but building a Yahoo to become a sustainable, great company over the next 30 years.”
How Lanzone turns the company around
As a veteran, Lanzone puts data at the center of every decision. “The first thing you want to look at is the data,” he explained. “Who is using it, how often do they love? What do they hate?”
Although Yahoo’s company story has many hubs (including tenure under Verizon and attempts to become a media and entertainment group), the company’s loyal user base has never wavered.
“We quickly realized that in our strongest places, it was because they used Yahoo for the same reason as they did 30 years ago,” Lanzone said. “We are the trust guide for the internet … to help them navigate the digital wilderness.”
The original Yahoo motto was “Always under construction” – with renewed significance. “We always have to grow, but represent our users, not for some corporate reasons,” he said.
Z Gen Surprim for Dot-comDear
Perhaps the most surprising thing about Yahoo’s traction to young users is, even for Lanzien, perhaps the most surprising. “People were surprised that we were in the top five in Gen Z,” he said. “One half of us are Gen Z and millennials.”
At the heart of the transformation is a cultural reset, one of which is rooted in Yahoo’s founding spirit, but suits modernity.
Yahoo co-founder Jerry Yang recently returned to speak at a family-wide meeting, strengthening the company’s initial mission: to guide people through the internet and help them achieve their goals online.
“That was the mission in 1995,” Lanzone said. “It’s the mission.”
To get there, Lanzone believes that leadership must be consistent and inspiring. “You have to bring in good people who share your passion for the project,” he said. “The people who want Yahoo to be great again.”
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