In September 2021, Jim Lanzone assumed the role of CEO at Yahoo, a company once synonymous with the enterprising spirit of the internet but had since lost that reputation. He took on this position following the acquisition of Yahoo by the private-equity firm Apollo Global Management, which purchased it from Verizon, a company known for its less than effective stewardship of Yahoo amidst numerous management changes. When asked during a visit to Yahoo’s New York City office about his reasons for accepting the role, Lanzone expressed his appreciation for transformation projects, stating, “I love turnarounds.”
Lanzone’s career history supports this passion for revitalizing companies. In 2001, he took control of the deteriorating search company AskJeeves, reviving it from a share price of less than a dollar to become a valuable acquisition for Barry Diller’s IAC Corp at $1.85 billion. At CBS, he was instrumental in propelling the company into the streaming era during the 2010s. With Yahoo—celebrating its 30th anniversary—potentially presenting his toughest challenge yet, Lanzone reflects on its history of missed opportunities, which partly explains its decline from a public company valued at over $100 billion to being sold for $5 billion in 2021. Notable missteps included Yahoo’s decision not to buy Google and the failed acquisition of Facebook from Mark Zuckerberg. Additionally, several talented individuals, including the founders of WhatsApp, departed the company, and promising acquisitions such as Flickr, Tumblr, and Huffington Post were offloaded at significantly reduced prices. Under Verizon’s ownership, Yahoo became a low-priority asset, further evidenced by its merger with AOL under the brand Oath.
Skepticism surrounded Lanzone’s appointment, with some analysts doubting his chances of success. However, Lanzone perceived Yahoo as undervalued, noting its significant revenue potential independently of its tarnished brand image. He expressed a disinterest in dwelling on past mistakes, regarding such discussions as monotonous, and focused on enhancing Yahoo’s existing capabilities. Lanzone restructured the company by shedding underperforming units, such as some ad tech divisions, and acquiring assets to strengthen its core operations, including Wagr, a sports betting app, to modernize Yahoo Sports. He also recruited experienced executives, like former ESPN digital head Ryan Spoon, to lead Yahoo Sports. These efforts reportedly resulted in a rapid turnaround, although specific financial details remain undisclosed due to Yahoo’s private status. According to data shared by Yahoo, the company ranks first in news, first in finance, and third in sports according to Comscore. Lanzone stated that “hundreds of millions” use Yahoo in the U.S. each month.
Following his first year in the position, the emergence of ChatGPT significantly impacted the tech landscape. Despite Yahoo’s history of stumbling during previous pivotal shifts, Lanzone assured that the company would not develop its own language models or invest heavily in data centers. Instead, Yahoo plans to capitalize on its in-house machine-learning expertise and collaborations with external AI providers, such as its partnership with the startup Sierra for automated customer service.
A strategic move by Lanzone involved acquiring Artifact, an AI-driven news aggregator created by Instagram co-founders Kevin Systrom and Mike Krieger. When Artifact was declared nonviable, Lanzone was among the contenders for its technology, which now serves as the foundation for Yahoo’s revamped homepage. Instead of integrating the technology into an existing product, Yahoo transformed Yahoo News to effectively become Artifact, earning Systrom’s endorsement for reaching a wide audience with their innovation.
