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May 18, 2012

Yahoo's New CEO Reorganizes Recently Created Consumer-Commerce Division

By Jordan Eggers, Contributing Writer

Five days after being appointed interim Chief Executive Officer of Yahoo Inc., Ross Levinsohn is dismantling the newly created consumer-commerce division by former CEO Scott Thompson.

Created in April, the new consumer commerce business unit was put in place to help Yahoo focus on delivering engaging and personalized consumer commerce experiences, connecting consumers to markets and merchants.

The commerce would have offered relevant and customized categories where people are already transacting on the Web, such as autos, travel, jobs, personals, real estate and retail goods.

However, according to the Associated Press, instead of operating as a separate division, Yahoo’s commerce operations will operate within the company’s global media team. Levinsohn sent out the decision Thursday in a company memo to Yahoo employees.

Thompson initially created the consumer commerce unit to revitalize the troubled Internet company and increase revenue. He resigned from Yahoo last Sunday after shareholder Daniel Loeb accused Thompson of lying on his resume.

Loeb confronted Yahoo’s directors on May 3 stating that Thompson might have falsified his resume by claiming to have a computer science degree, according to the New York Times.The New York Times article also noted how Stonehill College in Massachusetts, where Thompson graduated with an accounting degree, didn’t even offer a computer science degree at the time of his enrollment.

With Levinsohn as interim CEO for Yahoo, things for the Internet company will obviously change as he has a different idea of how the company should be handled.

Sam Shrauger, who was originally hired as an executive by Thompson, is now leaving Yahoo after only overseeing the consumer-commerce division for a month. Penny Baldwin, also previously chosen by Thompson, will be replaced by Mollie Spilman, who was previously part of Yahoo’s marketing division in the Americas. The global team will now be overseen by Mickie Rosen.

In related news, Yahoo opened Friday to a three-month high with shares now up 0.94 at $15.81.




Edited by Carrie Schmelkin
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