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Yahoo CMO Kathy Savitt Resigns; To Join STX Entertainment

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Yahoo Inc. 's YHOO chief marketing officer, Kathy Savitt, has decided to give in her papers after serving Yahoo for about three years. Savitt will join Hollywood studio, STX Entertainment, as the president of its digital business in October.

Yahoo CEO, Marissa Mayer, had roped in Savitt to turn around the company's advertising and marketing sales and increase market share. She was also the head of Yahoo's media and marketing department. Prior to this, Savitt worked with Amazon.com Inc. AMZN .

Yahoo recaptured its position as one of the world's most-visited online properties. Also, Mayer has been stepping up investments in key technologies both on the product as well as the technical side. However, revenues have not shown any positive trend yet and, in fact, the company has been losing share to Google GOOGL and Facebook.

The company is leaving no stone unturned to boost its business and expand revenues. Mayer plans to divest its remaining stake in Chinese e-Commerce giant, Alibaba Group Holding Ltd BABA , but Internal Revenue Service (IRS) declined its request for a tax-free spin-off, thus disappointing investors.

Moreover, the company, of late, has been under pressure from Starboard Value LP and other investors to return cash to shareholders, sell off Alibaba shares, find ways to cut taxes and put major acquisitions on hold.

At this juncture, the departure of any key employee could spell trouble.

Currently, Yahoo has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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