Yahoo's Turnaround Under Lanzone Sees 50% Gen Z User Growth

Jim Lanzone, a seasoned turnaround specialist, took the reins at Yahoo in 2021, seeing not just a struggling internet brand but an opportunity to revive a company with deep roots and loyal users. Lanzone, with a track record of turning around top internet companies like Ask Jeeves, CBS Interactive, and Tinder, viewed Yahoo as the ultimate challenge in corporate turnarounds. He described his approach as a "multi-phase turnaround—fixing to rebuilding to innovating," focusing on product development and cultural renewal.

Lanzone's philosophy centers on product quality, believing that a digital media brand's success hinges on the products it delivers. Under his leadership, Yahoo has refreshed all its major products, including Yahoo Finance and Yahoo Fantasy. Lanzone emphasized that fixing the user experience is crucial before rekindling brand affection. "You can’t do that until you actually fix the products first," he stated.

The transformation at Yahoo extends beyond product interfaces. Lanzone has restructured the company, attracting top talent from Silicon Valley. Many of these recruits, like Lanzone himself, had numerous other opportunities but were drawn to the challenge at Yahoo. Notable hires include chief marketing officer Josh Line from Paramount Global and Rob Wilk, Yahoo’s global head of consumer sales, who left Snap. This influx of talent has been pivotal in Yahoo's second act under private equity firm Apollo Global Management, which acquired Yahoo from Verizon for less than $5 billion in 2021.

Lanzone's approach to turning around companies involves data-driven decision-making. He analyzes user data to understand what people love and hate about Yahoo's products. Despite Yahoo's corporate pivots, its loyal user base has remained consistent, using Yahoo for the same reasons as 30 years ago. Lanzone has embraced the company's original motto, "Always Under Construction," emphasizing continuous evolution to meet user needs.

One of the most surprising aspects of Yahoo's revival is its appeal to younger users. Lanzone noted that Yahoo is now in the top five with Gen Z users, with half of its audience consisting of Gen Z and millennials. This cultural reset is rooted in Yahoo's founding ethos but adapted for the modern age. Co-founder Jerry Yang recently returned to speak at a company-wide meeting, reinforcing the company's original mission to guide people through the internet and help them accomplish their goals online.

Lanzone believes that leadership alignment and inspiration are key to Yahoo's success. He aims to bring in passionate individuals who share his vision for making Yahoo great again. This strategic approach has positioned Yahoo not just as a legacy brand but as a company poised for sustainable growth and innovation in the digital age.