Yahoo Renewal Will Succeed With Mayer at Helm: 10 Reasons Why

NEWS ANALYSIS: Yahoo CEO Marissa Mayer is trying to rebuild the company that once dominated the Web. It looks like she just might pull it off.

Yahoo CEO Marissa Mayer is in the process of transforming one of the most famous and beloved online companies in the world. After less than a year on the job she has already made a number of significant and at times controversial moves to try to turn the company around.

Although she still has some serious work cut out for her and needs to find a way to transform the massive company into one that can more adequately compete against today's Web giants, if anyone is up to the task, it's her. As a former Google Search chief and one of the best employees the search giant ever had, Mayer is the ideal choice to run Yahoo. She might even have what it takes to pull off this daunting task.

That Yahoo could succeed was thought to be impossible just years ago. The company was watching its search market share fall at a rapid rate, and its advertising business lagged far behind Google's. Although it was still the most popular Web site in the world, its actual value to those using it was waning. It was clear something needed to be done, and Marissa Mayer seemed like just the person for the job.

Now well into her first year as Yahoo's chief executive, Mayer is showing that her understanding of the marketplace and her ability to find the right deals for the right prices might just be the formula that keep's Yahoo's recovery on track.

Here are the reasons why Mayer's work at Yahoo will help her and Yahoo succeed in the long run.

1. Don't discount that Google background

Marissa Mayer came to Yahoo from Google. While she was there, Mayer was arguably the most prominent person outside of the big three—Larry Page, Sergey Brin and Eric Schmidt. The fact that she left Google, with all of that knowledge and went to Yahoo says everything a person needs to know about her ability to take a somewhat similar company and turn things around.

2. She brought other ex-Googlers to Yahoo

Soon after joining Yahoo it appeared that Mayer was sitting in Mountain View and hiring all of her old friends from Google. A large portion of Mayer's executive staff right now comes from Google. That so-called "brain drain" could come back to haunt Google and help Yahoo in a big way.

3. She's not afraid to partner with Google

Although she might be stealing some of Google's talent, Marissa Mayer has made it clear to investors that she won't shy away from partnering with her former company. In fact, rumors have been swirling for quite some time that Google and Yahoo are in talks on a wide array of possible partnerships. Will such deals happen? It's certainly possible.

4. Spending cash is usually a good idea

One of the best things Mayer has done so far is spend her company's cash wisely. She has made several acquisitions in the online and media world, and has even invested in some so-called "acqu-hires," where she bought a firm's employees for her own development efforts. Yahoo needs more talent, and Mayer is bringing it in.

Don Reisinger

Don Reisinger

Don Reisinger is a longtime freelance contributor to several technology and business publications. Over his career, Don has written about everything from geek-friendly gadgetry to issues of privacy...