Yahoo’s CTO, Farzad “Zod” Nazem, has announced his retirement. Why is he leaving, and what does it say about the future of Yahoo?
Possibility # 1: He’s really just retiring. Nazem is just 46, but he’s definitely come to a certain point in a 26-year career, spanning Oracle and Yahoo, at which it’s OK to quit while he’s ahead.
What it means for Yahoo: Nothing.
Possiblity # 2: In a reshaping Yahoo, where can Zod go? Yahoo has brought in a new CFO—Blake Jorgensen—from Wall Street (most recently as co-founder of Thomas Weisel Partners). Recruitment of a Wall Street guy, analysts say, means either that Yahoo is looking to go on an acquisition spree, or to be bought itself. Either way, Yahoo is heading towards a merger of different cultures, and a future in which home-grown products fall away from center stage—leaving the longstanding internal CTO in a position he might not enjoy.
What it means for Yahoo: Expect a upcoming shift from a technology/media company to either a holding company, or an organization on the verge of being absorbed into something much bigger.
Possibility #3: Zod is worried about the future of Yahoo.
Rob Hoff of Businessweek mentions that there’s been something of an exodus at Yahoo due to low morale, and that Zod may be its latest victim. Meanwhile, Microsoft publicly spurned a Yahoo buyout, at least for now; so Yahoo’s looking unpopular all around.
Cutting closer to Nazem’s own role, Panama did take quite a while to get off the ground, and Wall Street isn’t necessarily pleased with Panama’s performance. The Street’s evaluation of Panam isn’t entirely fair—it takes a while for any technology to get up and running. But that doesn’t mean Nazem isn’t feeling real pressure, and that Yahoo won’t continue to take the heat.
What it means for Yahoo: Note to Terry and everyone at Yahoo—Be worried.
