Yahoo Inc’s appointment of Google Inc veteran Marissa Mayer as its new chief executive surprised analysts, but they hailed the decision saying the Stanford engineer can create a more stable and focused organization.<\/p>\n
Mayer, 37, edged out front-runner and acting CEO Ross Levinsohn to become Yahoo’s third CEO in a year.<\/p>\n
“We believe Mayer’s background in product and technology and deep understanding of the Internet could lead to improved results at Yahoo longer-term,” ThinkEquity analyst Ronald Josey wrote in a note to clients.<\/p>\n
Mayer getting the top job in Yahoo was a surprise as it was seen as a race between Levinsohn and Hulu CEO Jason Kilar.<\/p>\n
Levinsohn was focusing on turning the company into an entertainment and information destination that wins back the advertising dollars flowing elsewhere.<\/p>\n
But the board may not have endorsed his media-focused, long-term plan to turn the ship around.<\/p>\n
Mayer’s appointment is a clear message from the board that her background in product is more likely to generate long-term revenue growth than a content focus, Needham & Co analyst Laura Martin said.<\/p>\n
Yahoo’s last two CEOs — Scott Thompson from PayPal and Carol Bartz from Autodesk Inc — also had more technology expertise in their resume than content and advertising.<\/p>\n
Citi Research analyst Mark Mahaney said he has high regards for Mayer’s organizational skills but Yahoo’s challenges are substantial.<\/p>\n
“Arguably, Yahoo has been mismanaged for more than five years with plenty of blame to go around.”<\/p>\n
Shares of Yahoo were up 1.6 percent at $15.90 in trading before the bell. The stock closed at $15.64 on Monday.<\/p>\n
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