Smash Notes

Back to Apollo’s Yahoo Playbook, 5 Years After the $5B Deal, with Jim Lanzone.

Why Do Big Internet Companies Fall Asleep at Scale?

Jim Lanzone says the usual failure at scale is falling asleep at the wheel. People who succeeded by climbing the ladder become conservative, and if the leaders are not product-driven they lose sight of what matters. The damage is often invisible from outside: the chance not taken, the company not bought, or the deal a different team would not have signed. You never see the list of what was on the table. What you see later is a startup beating them with something they did not ship.

His rule is the old line that only the paranoid survive. A product company in this business has to run hard for its users, in his phrase a hundred miles an hour, seven days a week. He is always worried about startups. The misses, not the visible decisions, are what catch a scaled company.

Transcript

Apollo’s Yahoo Playbook, 5 Years After the $5B Deal ·

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More from this episode

  1. How Did Apollo Buy Yahoo From Verizon?Jim Lanzone says he was not at Apollo when the firm decided to buy Yahoo.
  2. What Did Jim Lanzone Do in His First Six Months at Yahoo?Jim Lanzone says Yahoo was his third turnaround. Ask Jeeves was the first, during the web 1.0 crash. A 1990s startup he helped found was bought by Ask.
  3. How Is Apollo's Yahoo Turnaround Different From a Typical Buyout?Jim Lanzone says people always ask what it is like to work for private equity, and the reputation is not always good. His experience has been the opposite.
  4. Why Did Yahoo Give Each Brand Its Own General Manager?Jim Lanzone says Yahoo is a conglomerate, not a one-product company like Pinterest, Snap, Reddit, or Roku.
  5. Why Did Yahoo Shut Down Its Ad Tech Business?Jim Lanzone says the biggest asset Yahoo divested was AOL, and the first was Edgecast, a content delivery network competing with companies like Akamai that he…
  6. Why Did Yahoo Build Its Own Search Engine Again After 17 Years?Jim Lanzone says Yahoo Scout is not a frontier model like Gemini, ChatGPT, or Claude, and it is not meta-search in the way early Perplexity was, sitting on…
  7. How Did Yahoo Return Apollo's Capital So Fast?Jim Lanzone says Yahoo has paid back pretty much the price Apollo paid, and that this is public.
  8. Why Are Tiny Search Startups Valued Above Yahoo?Jim Lanzone says he is not kicking himself for acquisitions Yahoo missed, because startups have been priced so high.

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