How Yahoo! Aims To Reboot

A massive makeover has the slumping Web giant gunning for Google. Here's why it may pay off

It can't be easy for Yahoo!, the Internet's most durable portal, to play Pepsi to Google's Coke. But if Yahoo! continues to fall further behind Google in ad sales, the company may find itself stuck a perennial second--or worse. With its stock down 36% last year and ad sales failing to keep up with Google's, Yahoo!'s reputation has suffered as Google's stock has soared.

So Yahoo! is in the midst of a massive reorganization to focus on what matters: wringing more money from its ads and more time from its community. That hasn't been easy for a company that has divided its...

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