Yahoo 2010 Annual Report Download - page 5

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Part I
Item 1. Business
OVERVIEW
Yahoo! Inc., together with its consolidated subsidiaries (“Yahoo!,” the “Company,” “we,” or “us”), is a premier
digital media company that delivers personalized digital content and experiences, across devices and around the
globe, to vast audiences. We provide engaging and innovative canvases for advertisers to connect with their
target audiences using our unique blend of Science + Art + Scale. Through our proprietary technology and
insights, we deliver unique content and experiences for our audience and create powerful opportunities for our
advertisers to connect with their target audiences, in context and at scale. To users, we provide online properties
and services (“Yahoo! Properties”). To advertisers, we provide a range of marketing services designed to reach
and connect with users of our Yahoo! Properties, as well as with Internet users beyond Yahoo! Properties,
through a distribution network of third-party entities (our “Affiliates”) that have integrated our advertising
offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”). We believe
that our marketing services enable advertisers to deliver highly relevant marketing messages to their target
audiences.
We generate revenue from several offerings including the display of graphical advertisements (“display
advertising”), the display of text-based links to advertisers’ Websites (“search advertising”), and other sources.
Our offerings to users on Yahoo! Properties currently fall into three categories: Communications and
Communities; Search and Marketplaces; and Media. The majority of what we offer is available in more than 25
languages and in more than 50 countries, regions, and territories. We have properties tailored to users in specific
international markets including Yahoo! Homepage and social networking Websites including Meme and Wretch.
Yahoo! was developed and first made available in 1994 by our founders, David Filo and Jerry Yang, while they
were graduate students at Stanford University. We were incorporated in 1995 and are a Delaware corporation.
We are headquartered in Sunnyvale, California, and have offices in more than 25 countries, regions, and
territories.
CORPORATE HIGHLIGHTS
Changes in Our Board of Directors and Executive Leadership
During 2010, there were key changes to our Board of Directors (the “Board”) and executive leadership. Sue
James was elected to the Board and was named Chair of the Board’s Audit Committee, effective January 2010.
Ron Burkle, John Chapple and Frank J. Biondi, Jr. left our Board when their terms ended following our June
2010 annual meeting, and Brad Smith and Patti Hart were elected to our Board at that meeting. Aristotle Balogh
resigned as our Executive Vice President, Products and Chief Technology Officer, and Blake Irving became our
Chief Product Officer in May 2010. In November 2010, Ross Levinsohn became our Executive Vice President,
Americas, replacing Hilary Schneider in that role. The Company also has announced that David Kenny will
become a member of our Board and Eric Hippeau will resign from our Board effective April 1, 2011.
2010 Transactions
• Completed the transition of algorithmic search results on Yahoo! Properties and on Affiliate sites in the United
States (“U.S.”) and Canada to Microsoft Corporation (“Microsoft”), and completed the transition from
Yahoo!’s search marketing platform to Microsoft’s search advertising platform (adCenter) in those markets.
• Acquired Associated Content, an online publisher and distributer of original content that enables users to
publish their content on any topic and distributes that content through its Website and content partners. This
acquisition extends Yahoo!’s ability to provide high quality, personally relevant content for the benefit of both
users of Yahoo! branded sites and advertisers.
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