SHORE UP ADVERTISING
During its go-go years, Yahoo (YHOO) alienated advertisers by dictating terms. Now Yahoo must woo them by promising more bang for their buck, such as charging only when users click on an ad or make a purchase from the advertiser. This is going to be tough for new CEO Terry Semel, who has little experience selling ads to big businesses.
Yahoo has lost 10 top execs in a matter of months. Semel is expected to bring in his own lieutenants, which could prompt Yahoo President Jeffrey Mallett to leave. Semel has the tricky task of rebuilding management while keeping the loyalty of employees.
MAKE CUSTOMERS PAY
Semel has more than 20 years' experience selling entertainment to consumers. But doing it on the Internet is tricky. Most people don't have Net connections speedy enough to watch film clips or listen to live broadcasts--experiences Yahoo could charge for. Semel needs to come up with services that satisfy at slow access speeds.
BUILD A CORPORATE BUSINESS
Yahoo is selling custom-made Web sites and Internet conferencing services to other companies. This is expected to rack up $155 million this year. But will Yahoo, the consummate consumer brand, appeal to enough businesses? Already, cash-strapped Yahoo has been forced to postpone an ad blitz touting its corporate offerings.