The LinkUp Blog The Industry's Best-Kept Secret
A Case Of Really Unfortunate Timing….
On September 14th, Yahoo! announced that it had hired former Knight-Ridder executive Hilary Schneider to run its newly formed classified advertising unit. Yahoo! has finally taken the step of condsolidating all of its various classified businesses under one group, and felt that Schneider, with her experience running Knight-Ridder’s digital division before being promoted to senior vice president, provided an ideal skill-set to oversee the new unit. Yesterday, less than a week later, Yahoo! announced that revenue from online advertising is ‘slackening’ and would negatively impact its quarterly earnings. Shares of Yahoo! were immediately pounded, falling 11% in one day.
While one might be hard-pressed to surmise that the two announcements were related on their surface, their proximity to one another is intersting. It would make sense that Yahoo!’s softening advertising business would trigger a reorganization of its classified ad businesses and the infusion of new leadership to run the unit. Providing Wall Street some visibility into that softening ad market is simply a requirement of being a publicly traded company. So in that regard, one could assume that the two developments are completely related. Or maybe the daily newspaper industry is so cursed that dark storm clouds follow former newspaper execs wherever they go, plaguing their new employers with deteriorating performance and eroding shareholder value.
[tags]Yahoo!, Yahoo, Knight-Ridder, Classified Advertising, Online Classifieds, Employment Classifieds, Death of Newspapers, Job Boards, Online Advertising[/tags]