Major Overhaul May Be Overstatement For Yang's Yahoo; Search Ad Outsourcing No Go; YHOO Music May Go

Maybe there are a few sacred cows at Yahoo (NSDQ: YHOO) after all. The WSJ‘s Kevin Delaney suggests that the major review announced by Jerry Yang after he became CEO is unlikely to turn into a “major overhaul.” Yang is playing down the 100-day scenario offered in July and no “big strategic” announcements to mark the end next month.

Among the changes that were actively considered, according to the Journal: outsourcing search advertising, with Yahoo even going so far as to raise the idea with Google (NSDQ: GOOG). But Yang decided to forgo the revenue boost in favor of being able to provide customers with a full marketing spectrum.

Glen Kacher, managing director of investment fund Integral Capital Partners, told the Journal: “After meeting with management in August, we decided that the management isn’t considering the kind of transformational changes that would be required to improve their position in the market.” The fund sold all of its Yahoo holdings following that mid-August meeting.

That means the recently announced re-org resulting in the creation of the Global Partner Solutions division under Hilary Schneider could be the boldest move in the batch.

Meanwhile, Project Panama is boosting revenue per search, leaving some more optimistic than Kacher. Bear Stearns Robert Peck last week: “We believe that Yahoo’s shares represent an attractive risk/reward for investors willing to wait for Yahoo’s growth initiatives to deliver positive results.” He also brought up the recurring Microsoft (NSDQ: MSFT) deal rumor.

Yahoo Music: The subscription-music service could be scaled back greatly or even closed.

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