Yahoo! Inc. (YHOO) is losing top executives to upcoming media and brand advertising companies. Recent announcements included the departure of Patrick Berry, Head of the connected TV group and Josh Jacobs, VP and GM of Marketing Technology and Head of Strategy and Marketing for the Yahoo! Publisher Network (YPN).
While details regarding Berry’s new pursuits were hazy, there was considerably more publicity surrounding Jacobs’ new position at New York-based Glam Media Inc. Jacobs is joining Glam as SVP of brand advertising products and marketing and will report to Jack Rotolo, President of Glam Media North America.
Jacobs’ new responsibilities involve Glam’s owned and operated properties, which include content, technology, social media and mobile advertising assets. He will be responsible for the Glam network of more than 113 million active users globally, as well as the Glam Publisher Network of 1,400 publishers, agencies and brand advertising partners. He will also be responsible for global marketing and communications.
Glam Media has pioneered a revolutionary new media model that connects brand advertisers to their targeted audiences on a large content network. The increasing use of the Internet over the past few years and the growing preference of online sources for work, news and entertainment has spurred significant growth in this segment. Glam has been particularly successful in the women’s lifestyle, fashion and beauty industries, where it continues to build its position versus more established brands such as Yahoo! Shine, iVillage and Condé Nast’s Style.com. The company’s U.S. women’s division was profitable for the first time in September 2009, following 15 quarters of double-digit sequential revenue growth.
The impact of these senior executive losses on Yahoo’s long term business is unclear as of now. However, we believe it is something to watch out for, especially given the company’s decision to revamp and refocus its business. It would be a shame to see the company fail at these efforts.
We currently have a Neutral rating on Yahoo! shares.
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