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Summer: Yahoo! Needs a Fresh Perspective

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    Rick Summer, Morningstar senior analyst, on Yahoo’s new CEO Marissa Mayer.

  • Duration 3:31
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Yahoo! shares as you can see trading slightly lower now.

-- about a third of -- -- at 15:59.

-- following the announcement but.

-- mile long time Google executive as the new CEO so what does her appointment say about.

Yahoo!'s strategy and can -- turn the company around.

Joining me is -- some out Morningstar senior equity analyst.

Look she has no experience running a company -- but based on what we've seen so far of velocity is number six in the last five years I mean.

Does she have a good a shot as any.

Yeah I think so I mean we've had a host of people that have walked in that it had that experience and haven't been able to deliver itself.

-- a fresh perspective could be exactly what Yahoo! does mean.

But what she's going to need I think his time and does the do investors.

And others have the patience to give the time needed.

Yeah well what we're telling our clients says that's -- have the patience and nice having -- -- would mean stay on the sidelines.

I think there's probably a long list of things need to happen for this turnaround and we don't even know what all of those are.

Having -- and places only one step of that self.

Right now I think that it is certainly a wait and see to a great degree see what -- this is gonna take but clearly this is a different direction.

Then we would have expected the company to take even several weeks ago and that's something investors should consider.

What's going to be the biggest challenge what's the first thing she's gonna want to attack.

-- there's a couple things I think that you know looking at Ross Levinson being a very.

-- important member of that management team it's going to be very interesting to see what happens to -- He obstacles very key relationships with with that not only the sales team.

But several of the large advertisers so we could see some disruption here in the near term.

I think longer term there's a lot of chatter -- about her being a product person.

What does that mean does that mean you're gonna have a lot of heavy investment and a lot of really small products there isn't going to be an acquisition strategy we certainly need some clarity around -- to really get a good understanding but.

Clearly Yahoo! has some great assets but these are assets that are on the decline in terms of what's really value -- in the investment community she was never also on the advertising decided Google is that gonna have tough.

I think it may hurt I think that one of the things consider you look we need we need a fresh perspective we say the best athlete that he has however.

Will be her ability to attract and retain new talent I think that we're gonna certainly see some more -- shuffling the deck chairs if you will what we need some new folks on board.

I think understanding that big advertiser is -- this is not about necessarily the long tail of advertisers this is about.

Trying to appease and please Madison avenue.

Very quickly Rick Yahoo!'s 141000.

Employees there are those that say that number has to be cops somewhat below 101000.

Can she do that in this environment and does she need to do it.

Yeah I would I would expect that we need that to see some some cuts however.

If you really think of this company getting more heavy and a product development.

We may see some cuts but I think we're gonna see some hires and some new areas of the same time.

What's the magic number I think that's going to be very difficult to handicap.

-- certainly have to balance new product development where -- how do you actually exhibit some cost control of the same time.

No -- a tremendous opportunity for -- -- wow what a tremendous challenges well Rick summer of -- stuff thank you so much for joining us today we appreciate it.

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