Marissa Mayer's Big Test

It's crunch time for Yahoo's turnaround strategy

Just over a year and a half after Marissa Mayer accepted her gig as CEO of Yahoo--for which she was heralded, essentially, as a savior of the aging tech titan--the honeymoon period is over: Yahoo's fourth-quarter revenue was down, its ad sales are struggling, and its No. 2 executive, Henrique de Castro, was fired by Mayer last month after just over a year on the job.

But it's not too late to turn things around. For all its challenges, Yahoo remains one of the most powerful forces in tech. Every month, some 800 million people use its diverse online services, which...

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