Yahoo put the rumors to rest today, offering up details of its widely anticipated internal reorganization.

The embattled company said it is creating three new divisions that will consolidate operations under the purview of President Sue Decker, as well as a reorganization of its technology infrastructure and a new push into cloud computing and storage.

"This is a logical next step in light of our success last year in moving to a more centralized approach to developing world-class marketing products," Decker said in a statement.

The latest restructuring comes at a rocky time for Yahoo (NASDAQ: YHOO). Since Microsoft (NASDAQ: MSFT) first announced its intention to buy the company on February 1, Yahoo has been under a deep-focus microscope, the subject of an endless supply of rumors about potential deals, counter-deals, company strategies and internal intrigues.

Meantime, Yahoo has been facing a talent drain amid a string of resignations of top executives.

While speculation of ongoing talks with Microsoft continues, Yahoo's official message today is that its ad deal with Google (NASDAQ: GOOG) provided a better value than any Microsoft tie-up that was ever discussed.

Facing a proxy battle from activist investor Carl Icahn for control of its board, Yahoo has been working actively to convince shareholders that the current leadership has a plan to restore value to the company.

"I think we should give them the benefit of the doubt," IDC analyst Karsten Weide told InternetNews.com. "I think the substance is still there to help them turn Yahoo around. I think this will help them with that mission."

LATEST NEWS

Foes Unite: Google, Telcos Team on Broadband Push
Oracle Helps Linux Get Enhanced Data Integrity
IBM Pitches Tool for Tighter App Dev
Tech Firms Still Ready to Deal
Does Facebook Connect Go Far Enough?

S&P analyst Scott Kessler was less enthusiastic.

"We think management needs to do more to address an underperforming stock, frustrated shareholders and a number of recent executive departures," he wrote in a research note reiterating the firm's "hold" rating.

Overseeing company-wide product strategy and development, the new Audience Products Division will be led by Yahoo veteran Ash Patel, who previously headed up the company's platforms and infrastructure unit.

Hilary Schneider will lead the new U.S. division, charged with introducing all products to the domestic market. Schneider's division will work in concert with three international divisions.

A third division, called Insights Strategy, will focus on company-wide data analysis to provide users with more relevant products, services and ads.

Yahoo expects to name an executive to lead that group in the coming weeks. Yahoo spokesman Brad Williams said that the company is looking to fill that position with an outside hire.

On the technology side, Yahoo CTO Ari Balogh will oversee the creation of a new Cloud Computing and Data Infrastructure Group, charged with "developing a world-class cloud computing and storage infrastructure."

Does that mean that Yahoo has designs on the fast-growing cloud computing and hosted-storage markets, where it would compete with companies like Amazon and Google?

"It's really more about meeting our own needs as an enterprise, versus selling cloud computing externally," Williams told InternetNews.com.

That's probably for the best, said Weide, noting that now might not be the right time for Yahoo to make a push into a new business line. "Right now, they really have to stop the leaks in the ship and make it seaworthy," he said.

Go to page: 1  2  Next