Blog Post

Yahoo’s Bartz: Company’s Operating Margins Are ‘Pathetic’

Straight-talking Yahoo (NSDQ: YHOO) CEO Carol Bartz did not disappoint during the company’s analyst day Wednesday, starting off her remarks by saying that the company’s six percent operating margins were “pathetic” and saying that the company had become “boring.” She went on, “Today is a journey back to respect. We are not here to wow you today. We are here to intrigue you.” We’ll see — and we’ll post on newsworthy items coming out of the meeting.

In her remarks, Bartz played up the company’s scale — both in terms of users and in the various businesses it is in: “We are not a search company, we are not a display company. We are a broad-based internet company.” Thus, she said, the company’s competition runs the gamut from the WSJ and Bloomberg in finance to CNN and the BBC in news (Notably, no mention of Google (NSDQ: GOOG), a company which she has repeatedly said she does not want the company to be compared to). Other things that make the company unique, she said: Its sales force, as well as its story: “We have fallen, and we really want to get up.” Bartz asked for applause at the end of her remarks — and some polite clapping followed.

4 Responses to “Yahoo’s Bartz: Company’s Operating Margins Are ‘Pathetic’”

  1. I don't think there is anything wrong with a CEO admitting to a company's faults. Yahoo is in deep deep trouble. Whatever remaining value is left is primarily with its LatAm network…in the states it is more or less irrelevant.

    Yes – it is profoundly boring compared to Google or even Bing. When was the last time anyone even heard of a new product from Yahoo? Google may have become the status quo – but it continues to innovate and promote new products. Bing….well, its MSFT so lots of hooplah.

    Yahoo? Sometimes you run across them in web searches. But mostly you never even think of them anymore. Calling it a broad-based Internet company is not a strategy, it is a capitulation. It is meaningless. It is like saying you are a broad-based media company. What does that mean? You do a little bit of everything, and nothing very well? Good luck selling that.

  2. <i>CEO Carol Bartz started off her company’s analyst day by saying that the company had lost analysts’ respect</i>

    I would be dissappointed as a stakeholder or customer if I heard the CEO say something like that. This statement gives an impression that this CEO is out of touch of who respect really matters.

    <i>The company had “somehow become boring,”</i>

    In comparison to what? Is Bing or Google or Ask really that exciting!? I would agree Yahoo Community service which dominated in the 90s fell off against the Facebook and MySpace because Yahoo disregarded their community.

    To say Yahoo is a broad based internet company, then it is obvious the only entity Yahoo is competiting with is itself…