How Yahoo Managed to Break Free from Verizon’s Downward Trend

Today, I’m chatting with Jim Lanzone, the CEO of Yahoo. Summarizing Yahoo’s journey is no easy feat, but here’s the gist: years ago, Yahoo made a deal with Google to run its search box, which Jim refers to as Yahoo’s original sin. After a rollercoaster of mergers, spinouts, and a peculiar stint under Verizon, Yahoo has reclaimed its independence as a privately held company. It boasts significant assets in sports, finance, and surprisingly, email, where it’s seeing growth among younger users. Gen Z is all about Yahoo Mail, and that’s a fact.

According to Jim, Yahoo is profitable and expanding, but I had some pressing questions about its future. As the third-largest search engine, Yahoo recently launched an AI-driven search called Scout. But is the goal to actually compete with Google? Is investing heavily in traditional advertising wise when creators and influencers are capturing so much attention? And with the rise of gambling in sports and finance, does Jim have any boundaries he won’t cross with two of the internet’s biggest apps?

This conversation covers a lot, including some quirky organizational jargon and two internet veterans diving deep into nostalgic meme references. Jim is also quite passionate about ad tech, and we discussed his decision to shut down part of Yahoo’s ad business while focusing on the growing demand-side platform (DSP). Here’s a quick breakdown: a supply-side platform (SSP) allows apps or sites to sell ad space, while a DSP lets advertisers bid for that space. Yahoo had a significant SSP, but Jim decided to pivot towards the DSP, which is where the real revenue potential lies—think of how Google thrives on this model.

A robust DSP doesn’t just serve ads on websites or apps; it also extends to connected TVs (CTV). You’ll hear Jim mention how Yahoo’s DSP collaborates with platforms like Netflix and Spotify.

Now, let’s dive into the conversation.

Jim Lanzone, welcome to Decoder.

Great to be here.

I’m eager to discuss Yahoo, especially since my own journey in tech journalism began with Engadget when it was part of AOL. You recently announced the sale of Engadget to Static Media. What led to that decision?

It was the last non-Yahoo brand we sold. Since our spinout from Verizon in September 2021, we’ve been rationalizing our portfolio. We’ve had to ask ourselves, “Why do we still exist after all these years?” The answer goes back to our original mission: being the trusted guide to the internet. In 1995, that meant helping users find websites. In 2026, it could mean something entirely different.

When I joined, Yahoo had drifted far from its roots as an aggregator. We had a content delivery network and were involved in various media ventures. We decided to focus on our core strengths. Selling TechCrunch, Rivals, and Engadget was part of that strategy. We’re not the place for breaking news; we’re here to provide context for the products we operate in those categories.

I want to touch on that. Yahoo acquired Artifact, an AI-powered news app from the founders of Instagram. They sold it because they felt there wasn’t enough web content to aggregate anymore. Are you running out of web to aggregate?

We’re passionate about this. Our AI search engine, Scout, is designed to support publishers in the open web. The challenge for many news apps, including Artifact, was audience size. Building a large audience in news is tough, especially today. Yahoo has direct deals with thousands of publishers, which has been part of our history for over two decades. We send them traffic and share revenue, which is crucial for our model.

Artifact was a recognition that what we inherited wasn’t the best approach for that space. We’re fans of Artifact, but we decided to integrate it into Yahoo rather than completely overhaul it.

Yahoo has a massive audience, and we can leverage that to promote great products. That’s part of our growth strategy, which has been a significant turnaround.

When we started The Verge in 2011, our first big syndication deal was with Yahoo, and I remember trying to figure out what stories would get featured on the Yahoo homepage. We discovered that the algorithm had a strange affinity for fish stories.

I believe it!

We even had “Fish Fridays” at The Verge, searching for fish tech stories to drive traffic. It shaped my understanding of running a media property.

It’s all about the fish!

I’m curious about Yahoo’s role as an aggregator. With the decline of traditional news sources and platforms like Twitter not driving traffic anymore, do you think Yahoo can sustain its model?

Yahoo has always been about helping users find content. We take that responsibility seriously. Over 70% of our visits are direct, which is a strong position. However, I agree that the landscape is changing, especially with the rise of large language models (LLMs).

We’ve designed Scout to explicitly link to publishers, ensuring they receive traffic from the content we aggregate. This is essential for maintaining a healthy ecosystem.

I think Google would have had a more traditional interface if they had launched first. Once ChatGPT hit the market, they had to adapt quickly.

You can see Google struggling with their publisher relationships and how they integrate ads. Similarly, ChatGPT is still figuring out its advertising experience.

Google’s initial interface was research-heavy, but we’ve approached it differently. We aim to send traffic downstream to publishers, which is vital for their survival.

Let’s shift to advertising. You’ve made significant changes, including selling off parts of the business. How do you view the dynamic of sending traffic downstream?

We believe in sending traffic to publishers. We think users want to access original sources and check facts. Our search engine, Scout, is designed to facilitate that.

We’ve restructured Yahoo to focus on being a portal rather than a clickbait newsfeed. We want to provide utility and value to our users.

You mentioned that Yahoo has a history of aggregating content. How do you balance that with the need for original content?

We’re not in the business of breaking news. Instead, we focus on providing context and analysis. We’re producing original content in sports and finance, but it’s not about breaking news.

In sports, we’re a top platform for fantasy games, and in finance, we’re a leading source for portfolio tracking and research.

Let’s talk about your role as CEO. You took over after Apollo Global bought Yahoo. What was the pitch for you to lead the company?

After the acquisition, they reached out to me about running Yahoo. I’ve always seen it as a grand turnaround opportunity. I was excited to take on the challenge.

Apollo has provided capital for growth, and we’ve made strategic decisions to improve profitability. We’re not just moving money around; we’re focused on sustainable growth.

You’ve mentioned that Yahoo is profitable. Can you share more about that?

Yahoo is very profitable, with revenue in the billions. We’ve streamlined operations and removed unprofitable segments.

Let’s discuss your decision-making process. How do you approach making decisions at Yahoo?

I’m quick to make decisions, and I prefer my team to take ownership. Our framework is centered around our mission and growth objectives.

Yahoo is structured as a conglomerate, with general managers overseeing different divisions. This allows for expertise and efficiency while maintaining a focus on growth.

How do the divisions work together?

Each division has its own GM, and there’s harmony across the businesses. We collaborate on initiatives and share resources, ensuring we’re all aligned.

Let’s talk about monetization. You’ve invested in your demand-side platform for ads. Why are you still focused on traditional display advertising?

We’ve shifted our focus to the DSP, which is where the real revenue potential lies. We’re also exploring partnerships in the gambling space, but our primary revenue comes from premium properties and targeted advertising.

What’s your vision for search?

We aim to grow our search volume by enhancing the user experience with Scout. Our goal is to encourage users to choose Yahoo for their search needs.

You mentioned working with Anthropic for your search engine. How does that partnership work?

We’re using Anthropic’s model to process our data and deliver competitive search results. This allows us to provide personalized experiences for users.

As you look to the future, what’s your ultimate goal for Yahoo?

We want to build a strong, healthy public company that can thrive in the long term. We’re focused on growth and improving our products to better serve our users.

Thanks for the conversation, Jim. It’s been great to hear your insights on Yahoo’s journey and future.

Thank you! I appreciate the opportunity to share our story.