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Yahoo CEO Terry Semel announced major changes in the company's executive and organizational structure Tuesday evening. Three new operating groups will be formed: Advertiser and Publisher (to be run by current CFO Susan Decker), Technology (to be run by CTO Farzad Nazem), and Audience (to be led by a yet-unnamed executive). COO Dan Rosensweig and Media Group head Lloyd Braun will leave Yahoo, which has been struggling to overcome poor revenue growth, internal dissent and a sagging stock price. Yahoo stated that its four key objectives in the restructure will be (1) expanding customer-centric culture, (2) creating leading social media environments, (3) leading in next-generation advertising platforms, and (4) driving organizational effectiveness and scale. The move quiets speculation that CEO Semel himself may be on his way out while supporting the theory that Yahoo is priming Decker to eventually replace Semel at the helm.
• Sources: Yahoo press release, Terry Semel's blog post, Wall St. Journal, New York Times, Associated Press, Bloomberg, BusinessWeek, CNET
• Related commentary: TechCrunch, Charlene Li (Forrester), Tom Foremski, Om Malik, PaidContent, Paul Kedrosky, Silicon Valley Watcher, Yahoo's Reorganization: Where's David Filo?, Yahoo Memo Urges Wake-Up Call: Enough of the "Peanut Butter" Strategy!, The Winds of Change at Yahoo!, Yahoo: Find Your Strategic Advantage Against Google, Top Ten Candidates To Take Terry Semel's Job At Yahoo. Conference call transcripts: Yahoo! Q3 2006
• Potentially impacted stocks and ETFs: Yahoo (YHOO). ETFs: Internet HOLDRs (HHH)

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Source: Major Reorganization At Yahoo Aims To Regain Lost Momentum