Iny sold 50 of that stake 2012, they still own a part of alibaba said to be valued at 24 billion. There was an idea of a spin off, but the board decided a reverse of the spinoff, operating businesses by committees selected by the board. She has announced a plan to return Iconic Company to greatness and that is what we will talk about. I am pleased to have her. Welcome. Marissa thank you for having me. Charlie good to have you here. L me how you see you today see yahoo today and what you want to do to return this Iconic Company to greatness . What is the plan . Marissa this was the original internet icon and a huge part of peoples daily lives, more than half of the viewers will view a yahoo product is sometime today. And it is an amazing opportunity to say, how can we take something that was such a huge part of peoples lives, even today, and transition as we see a shift in technology. Radio,bile, with wearables, some any great opportunities in terms of, how do we guide people. This is a guide to the world wide web, how can we be that guide. How can we be that modern version of that. We have come so far and i am proud of our progress, but there is still more to do. And we have tremendous assets, a large stake in yahoo japan, we also have as you mentioned, the alibaba stake, and so you know, there is quite a lot overall. There is the operating business, how do you provide the service to one billion users every month , the mail, sports, finance, and how do we manage these large assets that we have in china and japan . Charlie so the board has decided to do what . To have conversations about selling core assets . Marissa the alibaba asset is going to be really large inside of yahoo . And one thing we are looking at, how do we create the most value for a shareholder . One element of that is really around, how do we get alibaba into an entity by itself. By doing that, we unlock opportunities in terms of tax efficiency, greater valuations, valuations, etc. The all about us take into its own country, weve decided to pause that, now were looking at we can do a reverse spin, or an alternative with a business that could be a merger, ultimately, basically get both the operating this operating part of yahoo and alibaba into separate entities. Rlie the survey by 42 this would be by 42 . Marissa we have terrific ,raffic, advertising revenues but when we look at where we want to put our energy, we really want to have fewer, fewer arrows for strategic pushes, with more people on them. We have tried to change the focus, from autos, to personal, to today, our focus is search, mail, and a tumbler. Those are three platforms. In terms of the verticals, news, finance, lifestyle and sports. Marissa what charlie what will this do for you and how will you make it a success . Marissa we want to focus on our end users, had we maker that we provide them with the best possible service . The best possible news. Also, the shareholders. We want to generate the most possible value for them and there is great opportunity in this asset stage to really unlock more value. Charlie there are big five companies, yahoo used to be one of them, but is not in that ranking now, microsoft, amazon, facebook, and others. Or does yahoo fit where does yahoo fit . When you find a place in search . Or looking at email . Marissa search today, web search is what a lot of people think about. We are really proud of how far the Search Industry has compared but if you look at search on a mobile phone, it should be different man what it is today. Patients a lot about you as a person. Jfkxample, if i type in into web search, i am probably looking for john f. Kennedy. Whileype it into my phone i am going down the freeway and you know from my email that i have a receipt to be on a flight later that day, chances are, i am trying to find out where jfk is, what gate the flight is leaving from, etc. So there are new forms emerging. This would be like a personal assistant. Court, we really think that given our heritage of search, there is a lot we can do using preferences, even know email, obviously with their permission. This is rethinking how search can work. Today, our market share is around 10 , overall. I think when you look at the broader world of search, a majority of searches are done from about phones. The other thing we know, we have and analytical side, knowing that a percent of time is spent on browsers, 92 of time is spent on applications and web search is confined to the browser. How can we really unlock the information data and capability of all of the different apps to help make phones more effective. Charlie that is a promise you have been talking about for a while. Pp do youving to a think that will happens. Marissa i think that when you start to see Something Like the voices search, image recognition, a lot of these problems have been solved in recent years and when i look at the system, the fact we now have apps on our phone, they ber, book au get an u flight come if i know your preference and what services you like, i can help with a search a search assistant can help pull that together and make life charlie more seamless. , thereu came to yahoo was high expectation about where you had come from and the role you played at google. Do you think that expectation for you was too high . You had great ideas, you look at yahoo and you knew what the future was going to be in terms of mobile, you saw that coming. You look at the possibilities of mobile, and yet who had generated company because of ads. Marissa i think hopes were high because there is a perfect team at yahoo , great people behind the products and you can feel it when you use the website. There are great personalities and opportunity and i think that people like to cheer for yahoo and when marissa selected patients for you were enormously high. Marissa the brand is very iconic on the team and the team is very. Excellent. There is a strategy that made sense. Mobile is yahoo s future. News,e mail, search, sports, finance, these are things that people like to do on their phone. So there is a great opportunity for us and we have made a lot of progress over the last few years, going basically from having no users, to having 600 million on mobile. No revenue inst terms of mobile advertising, and last year, we had 1. 6 billion of advertising, and this is a business that we have grown in less than three years. Charlie why is there some as criticism of yahoo . Looking at what you have done since 2012, they said that they were a flurry of acquisitions, including tumbler, and most of them did not work. She spent 2 billion and most have not worked and have been written off. Marissa i would say that i think it really was a matter of, we needed to rebuild talent base. In a companyineers of 14,000, working on mobile. Today we have more than 500 engineers working on mobile. Shops of the biggest app in the world could we had to build that and we did it to acquisitions. We saw the benefits of those acquisitions in our mobile pair because mobile. Yes, we did see a rate down, but that is not because of acquisitions. Charlie and with tumbler . Marissa click tumbler, we have fallen a little behind. But i am still optimistic about tumbler. This is a great platform. The time spent in there is really high and overall it is a great opportunity to take things like advertising and mobile. Tumbler is growing nicely in terms of daily active users. Years, look at the 3. 5 since july 2012, and here we are in march of 2016. When you look at what has happened, what did you do wrong . Marissa i think that, one for my do not think that the story has played out. When we look at this, we still have plans for the company and we should look at the turnaround. The turnaround, this takes about 56 years. Charlie it is rare when you are able to turn a tech company around, apple being one. Marissa i can see the Strategic Plan, we can see how it is working. There are 6 million 600 million mobile users. We are generating revenue. This is a feature that we built ourselves and when i came to yahoo , and came in because i wanted to work hard and about it was a great challenge. I met with all the Business Leaders and reviewed things, every single one was in decline and nobody had any idea about the turnaround. Lie the ceos marissa everything was in decline, i came and i thought, wow this is a problem. I went to the board and said, we have a problem. We need to get these things growing again. Nobody knew how to do it. Are still very popular and effective, but mobile is where the action is. We had to build ourselves a near a new feature and we needed to build it to scale that matters for yahoo . Today, the mobile video and revenue is material, over all to the company. We are really proud of that. We had taken it from a few Million Dollars to today, 1 billion and one of the fastestgrowing businesses we have seen. I am very proud of what we did, but we needed to decide in the turnaround, how do we stabilize that declining revenue, because there was a lot of it. 4 billion a year. And then be able to grow fast enough to offset that and actually show hypergrowth you expect, but charlie 2. 1 is the expectation level and the difficulty of the challenges you face, declining revenues. But you see yourself any situation in which you have stockholders, shareholders, making certain demands and the board deciding to say, yes, we will consider selling these assets and you on the other hand, you are trying to develop a plan to make these assets functional, including illuminated businesses you are not in, that you have found unsuccessful. Marissa but they are completely complementary, at least for the short holders shareholders, this separate the alibaba stake. We could spin it off. Charlie why didnt you do that . Marissa we didnt do the forwards ben. Charlie . Because marissa overall the market was now we are looking at rivers spin and we are doing work on that. We are also looking at sales and corporate in fact, those two processes, looking at a different alternative in terms of the overall strategic core, this is the same as a reverse spin. You end up with a Public Entity at the end versus a privately held company. I think that either of those outcomes would be really good for yahoo . I can see outcomes where we could become stronger. Either because we get more mobile distribution, or ultimately, these could be done more privately. Overall, i can see an outcome where we can achieve separation of the alibaba stake, which is critical for unlocking value. While we also get a boost to the core operating business for yahoo . Charlie when you sold one half of the stake in 2013, what happened to those revenues . Marissa proceeds were returned to shareholders. Billion, have over 2 but we actually were 200 billion, but we actually return 10 billion to shareholders. So, we have done a significant number of buybacks and returned a lot of the value to shareholders, which we think is appropriate. Charlie if there is a cell, you go with the company . Marissa the biggest piece for me, taking this Iconic Company to the right place. Charlie apart from the alibaba stake. Marissa yes, that question for yahoo ,primary issue is technology, the services, the employees, how do we get that to the best possible place for yahoo and find it the best possible future could i am secondary to that. Charlie what would you like . Careould all this time and of these assets and redesigning them, i would assume that you want to go or they are. Marissa i love running yahoo and i think that the people are terrific, i love the products that we get to work on, this is i would loveng and to see it through. But obviously, we have our duties to find the most value, so i hope that the strategic alternative has a place for me. We will obviously honor our commitment to our shareholders. Charlie there was a story about one of the other firms, it could be true for you, of talent flight. In circumstances like this, you had to increase the premium you pay for employees at a time like this, true . Marissa i think that that is true. One thing that people need nobody does their best work when they are afraid. You need to remove uncertainty and what we have done is make sure that people understand they are part of the future. Certainly right now, talent is a hot issue at every company in Silicon Valley. Especially for us, and we have had to take steps in terms of compensation to make sure that people understand how we value their efforts. Charlie how difficult was it for you ands 2012, to get since 2012, to get a Firm Position on mobile ads, because predecessors had not left you in a Firm Position . You had to play catchup. Marissa when i came, my thesis was on mobile. How do you take all of those Great Services over to mobile. When i got to yahoo , i spent the first few weeks hanging out in the cafeteria my talking to anybody who would talk to me. I finally ran into a mobile engineer, his name was tony. And i asked, what are you doing . He said, i am about. And i asked how big is the mobile team . And he said 30 people. I was really taken aback that it was only 30 people. And he said, dont worry, there are more of us. And i said, how many . He said, maybe twice that. And i said, maybe 60. And i said, guys, how many engineers do we have that work on mobile . 100 and they said 100. And we needed to build competencies they are really quickly and we really needed to come it was obvious at the time, but there was a lot of discussion around native applications, which forms measured mattered, and without a native apps where the right thing to do. We were working on different apps at that time we decided that ios and android were the two platforms that would become dominant and we were right on that that did right on that that bet. At the time, it was not obvious at all. And there is a terrific leader and manager in the company, his name is adam, who became the Senior Vice President of mobile and he has done a great job of recruiting engineers, recruiting people into a place where they can do terrific work. We wanted we won a design award for two years in a row. One for weather and one for news digest. We came a long way, especially where we came from. There is still more to do. We love to have even more engagement on mobile and we are working on this. Charlie what about decline . Marissa we started very low. Charlie and the dominance of these five Huge Companies . Marissa 600 million mobile users, and in the top five, audiences globally. And mobile advertising business, that is more than 1 billion, that is as easily into the Top Mobile Advertising Companies in the world. Part of the issue is that we were so big to begin with. There are only three u. S. Based companies that have more the one billion users every month. There are only three u. S. Companies that have had more than 4 billion in Digital Advertising a year, google and facebook. We came from a very large place. And that makes it really hard to generate growth. 10 million new users. 10 million of additional revenue on 4 billion. Charlie the number of users you have had for a number of a long time the number of users you have had for a long time . Marissa well, we have been growing users and it continues to grow. It is actually higher than one billion. Charlie why do you think that people come to yahoo . Marissa our businesses around informing and connecting users and for me that search, male, and digital content. It really is a digital network, because the three really work together. There are some people who come for mail and to the state and to do a search or read a news article. Some people come for sports, and they might read emails. Search is really around helping people do discovery and in terms of the business, it really is a lucrative form of Digital Advertising. Male, there is less frequency, they are checking the mail dozens of times a day and for us, the news is our voice. It allows us to personalize, it allows us to differentiate charlie he was done magazine. S. The number of people you brought in to provide a kind of news base for the company. And you also raised the question, fundamental credit they say, look at the core assets and if you take the alibaba stake outside of it, the value is very small. Marissa i do not think the value is small, the way the market is valuing them today is small. Charlie it is almost minimum. Marissa we think that they are very undervalued. Charlie but the market says that those core businesses are not worth much. Marissa this is part of why we are considering because we think there is more value their that can be realized. Considering alternatives is one way to unlock the value. Charlie do you think that he will be running yahoo a year from now . Because people ask that. Marissa again, i would love to be running yahoo , we have a threeyear Strategic Plan and i want to see how it could work and get the fulton around. Turnaround. But it is about the users and about employees, and what is happening with all of them. I certainly hope that our fromces are here a year now and that they run even better than they do today. That should easily be the outcome. And we have a Terrific Team at yahoo and a really help that they are allowed to continue to do the work. We are going to look at all possible Strategic Alternatives and i am positive we will find the right one. Charlie i am told that you have reached out to lots of people to ask for, look at the position we are in, what is the best way to go. You are speaking advice from a crosssection of people, to say, this is the challenge we have and this is my plan, what do you think . Marissa yes, we have gotten a lot of advice. Our situation is complicated, so itll take a complicated solution. Charlie explain what you mean by complicated. Marissa when you look at our business that the search, the mail, the content, when you also look at the stake in alibaba, the joint venture with yahoo japan, a joint venture in australia, and we have yahoo seven, when you look all the different elements of the business, this is a complicated base. When you look at how we can maximize the value that is recognized by all the different pieces, it is, look it appeared it is complicated. Charlie in order to get a spin off of the alibi the assets, who would have to alibaba assets, who would have to sign on to do that . The price we bought the state for was relatively low. But it has gone on to really multiply, it has a tremendous return. So, given that there is a large liability on that stake, there are various ways to address it, obviously it is tied closely to the value of alibaba over all. It is a publicly traded company. But basically, the thought is, there is more Tax Liability introduced by a spinning out of alibaba, then there is with a reverse spin and the company that we built to operate yahoo is a smaller Tax Liability. Charlie do you feel pressure from stockholders . Marissa we certainly see their criticisms and challenges. , i think that having a lot of different viewpoints on the issue is helpful. We really take that seriously, we engage with them, we engage with all shareholders and we integrate that to the best of our ability to alternately find the right path. Charlie if you look back in the last 3. 54 years, was there a big bet that you wish you had made my that you do not make made, that you do not make . Marissa we have made some really big that bets. We have tried to populate the talent. Charlie this was an acquisition . They now work on mobile, these are the people all of mobile those different mobile applications. We have taken what was a really scattered framework of mobile applications, i think at one point we had over 80 applications, and now we have about seven or eight that are really strong. I think the big bet on tumbler to me, while it may not be yet material, this is a terrific asset, terrific network, the team working there is exceptional. And we have a great path forward in terms of what we can do, how we can help to continue to grow that community of creators, while providing a great opportunity for brands and advertisers. Charlie then why was it necessary to reduce, to write down some of the value of that . Marissa there are a whole set of accounting rules, part of it is that the market cap is in fact, complicated. When youre trying to find a market cap of our operating systems, it becomes attractive. There is only so much left. And if your book value exceeds the market value, you need to give a breakdown. Charlie yahoo is a company that everybody has affection for and want to see succeed, as they do for you, because you have been a part of the Silicon Valley for a while. Learned, not about specific things, but any sense of coming into a certain likeness . What do you wish you had known . What has been a learning experience . Marissa again, what is great, i get to learn every day. And i think that, it has been amazing. I love design and getting to work with the team at yahoo to design the future, how the future how the cup and he works, this has been in a credible spirits. And cripple experience. Think that pacing and time is always important. I think that there are some things that we did too quickly and some things we probably did too slowly. Charlie and not enough. Marissa and not enough. But i think that we learn from that and we are constantly getting better. And when i look at the Strategic Plan we rolled out, this is the combination of all of that learning credit one thing we should do is get away from declining revenue more quickly and get more focused on areas of revenue and of the business that can grow really substantially to get us returns. And really, that is another key that yahoo , there are some many things we work on, it is really important for us to be focused. Focused on providing the best possible service to users, focused on the product line, where we can do really excellent in each area. And really differentiated. I am feeling good about the Strategic Plan and how we can achieve that in all the areas. With realt had to do estate, offices, but it also had to do with people. People you had brought in, hoping that they could create something that would be a vital part of of all those, what was the hardest loss for you . For the Yahoo Community . Marissa i think along the way, there were all kinds of Different Things we tried. I am proud of those experiences. We tried to set up a community, digital magazines, i would say when you look at the successes we have had, and with native advertising, yahoo gemini is one of the fastest forms of advertising growing on the web. Overall, this i am proud of that. I would say that some things we learned around digital magazines , theye original content just live on in a different form. Because some of those types of media when they translate online, you need a lot more support in terms of the tools offered. Why is Yahoo Finance more successful than the magazine, because you have fully owes portfolio. Where we successful in sports, because you can follow teams, put together your fantasy football lineup. So, i think that having told is tools is another key in succeeding. Charlie someone you know would say, what did you think of nfls streaming . Marissa we were the first load global live stream of the nfl in october, the Buffalo Bills and the jacksonville jaguars. It started at about 4 30 a. M. I pulled into the parking lot and it was amazing, because there were literally 300 cars at 4 30 a. M. I took a picture of it. It was a great moment for the company. Was to try and build a Record Number of viewers, we saw 33 million views on that stream. All on a sunday morning, which tends to be a sleepy time on the internet. And we did it was unbelievably high death quality def quality, very little rebuffering, compared to standards and other streaming providers. I think that we made a case for ourselves in terms of how we work with quality. And obviously, because of our heritage in sports, this fit in with fantasy football and it was a really proud moment for the company to get to partner with the nfl. Charlie then your time said New York Times said in december, it is a collection of news, entertainment, and communications, destinations supported by ads. It was hard to build something novel, but it appears like they are building a better yahoo . What is a Different Company that Marissa Mayer could have built . One option, diving into television. She could have bought netflix. Was that a possibility for you, did you think about that . Because when terry was there, the idea of yahoo as a powerhouse was given emphasis. Marissa yes, i think that overall, there are opportunities. That the same time, we have a huge user base. We cannot stop running emails, searches, providing the news, so and we have 4 billion worth of advertising revenue and advertising messages that we needed to get out on behalf of advertisers. So, i do not think there was a world where we could have done a pivot and walked away from things. There are maybe some things we could have added, but that goes back to the point of focus and distraction and saying, we really want to go back i found i really wanted to find the core of yahoo and figure out how to use them. Charlie and build on them. You said what you had done in a new plan is a bold action. That sum would look at what has taken place and to say this is not a bold action, she is simply said this a comb this columnistents a said, she is just changing yahoo . They said that the assets could be valued much better than they are today. Did you consider that at the time, was that a choice that was decided not to make . Marissa we decided to buy tumbler. That was a big bold move. Bets. Made it big g be some of them have paid off. I really feel like we dont want to turn our backs on the users we already have. And we have had a lot of opportunity. Now on mobile, people are doing something that is completely different than what they had done on desktop. Are ahetolls tools little different, but it is still about communication, information, how you entertain yourself and all the things we provided on desktop, they still have a lot of value and they are still the most frequent things people do on their phones. I did not feel like we needed to necessarily change who we work and move into a new area, i felt like optimizing what we had and really making a more suitable for mobile, because we all knew how big mobile could be. It was really probably the better path for us. I felt like we should continue to make big bets in the areas we were already strong in. Charlie how long do you think you have to make this plan work . Marissa this is a multiyear plan, obviously with the reverse spin or the alternative, that will come to conclusion far before that. I hope that we are able to see that plan through, because i do think we can see how it will work and how it will affect the turnaround. Charlie you are not on the committee that is looking at new acquisitions, is there reason for that . Marissa this is the way it is typically done, for myself and david philo, the founder of yahoo , we are considered not independent core numbers, we are employees and we are part of the operating system. Charlie you are employees. Marissa yes, there is a committee already formed, but we are working with them each day. Charlie let me go back to think out loud about how beyond building the plan, what you hope and believe yahoo can become. Marissa i think it can become a vital piece of everybodys day on the phone. And i really think that we can add a lot of value, whimsy, and a lot of utility two things people do every day and trying to make lives easier and help them somebody wants said, i turned to yahoo for everything i need to know. And a few things i didnt know i wanted to know. There is an element of serendipity in it and i think that obviously, there is so many things you can do, but i really hope we can continue immobile to be that guide we have always been. To guide people to information they need and a few serendipitous pieces of information or things to do that maybe they would not have thought of. Charlie is your biggest challenge right now, you do not do many interviews, to condense not only your employees, who i assume are with you, but to convince the community and the people, that this is a plan that will work and will work and will ofe the power of reducing, changing the attitude that the Investment Committee has about these assets . Marissa i think when the business really start to grow, that type of change in the Investment Community will happen. The biggest challenge we see is around mobile engagement. We have 600 million users, how do we get them to monthly users and coming every day . How do we build products they need to have every day, so we are looking at that, how we invest in medications, that is the biggest driver, frequency of use. How many times you check email on your phone or text, or message, so this is a great opportunity around communications. Also, how do we make the applications of the best applications for news, for search, for sports, for finance and lifestyle. We are working hard on those areas because we think that by creating great tools that can be used on the phone and putting them together in a right way, you can ultimately really build the user base that comes more frequently and find more utility and value in applications. We are already highly valued, but we want to increase frequency. Charlie and with the Investment Community. When you look at the companies you compete with today, users and the success of facebook in respect to yahoo and advertising on mobile, do you see that leveling off . Marissa i think that mobile will continue to grow, mobile advertising will continue to grow. Because i think, one of the things you see, search continues to be lucrative. Charlie but you marissa there are so many new formats of advertising, there is native advertising, click to install ads, where people are quickly trying to get those installed on phones. So many different models, these are the early days in my view of mobile advertising, what is the best way to put that message out and for the advertisers, what is the right parts right product . How do you format that product and how do you make sure that messages are received most effectively. Charlie it is clear to see where the cloud, the impact it would have when you took over. In 2016, what is clear in terms of your vision of the future . Marissa one of the interesting things we have seen is video. I think that now and when you look at what is happening with mobile video, this is actually a cross product, so we will be think about video antisocial, but video watching on phones is at an unbelievable level. Last year, it was found that more people watch there is more video watch on mobile devices than on desktops. Which is already in garbled. Charlie people watching wherever they are . Marissa i watched a Television Show last night at the gym. Between phones, tablet, people are watching an incredible amount of video on those. We are excited to participate with that. Nfl nicely ties together the video element, one of the biggest things we needed to do for streaming that game was make sure it worked on every platform, ios, all the different formats. I think that mobile video will surprise everybody. I think it will get even bigger over the next years. We are working on how can we get really deep and use video as an engagement lever on key products like sports and finance. Charlie at the end of the day, what you are saying is the biggest asset that yahoo as this is, is the users . Marissa the audience that comes to yahoo , the following of the brand, the fact people, every day, this is a huge amount. A huge number of people who really rely on us and a huge amount of traffic that ultimately gets distributed to the yahoo you dont yahoo homepage and through the mail service. The ability to direct that traffic and attention to the stories that matter, the key information, that is a huge opportunity. Charlie you have had a successful career at google, a wonderful family and you have had all of the money you need for the rest of your life and other lives, but somehow, because this has been such a challenge, with expectations you had maybe not the filled early on fulfilled early on, your own determination to do this has magnified today because of the challenges that have presented themselves. Marissa absolutely. I feel like now, i can see it, i can see how yahoo can win and how we can get there and it makes me even more determined. Charlie why do you think other people have not seen it as clearly as you have . They are questioning yahoo at this moment . Marissa i get a print row seat. Our situation is, could. Is complicated. There is a lot of work left to do, but i can see how much progress we have made. Charlie will i have others not seen it . Marissa i can see us in the future. There is a big dichotomy at yahoo , are you looking at the operating business, are you looking at the asian assets, which are tens of billions of dollars. How do you balance those . I definitely see in our shareholder base, we have people who own yahoo because of the core business, those who own yahoo because of the assets and how they are valued. Charlie how would you break that down in terms of people who see yahoo and see that it is asian investments, versus those who see the core business . Marissa so yes, certainly the value is evaluated on asian assets. Maybe you own the stocks because of the future. Where do you really think is going to be the biggest catalyst . Charlie you firmly believe that the value of the core asset can be marissa i think it could be higher than today. Charlie of course. Having believed that, you believe the value of assets can match the value of the assets of the Japanese Investment . Marissa i think that, overall, i think we would need it to achieve growth. Growing revenue, we know that, because of declining legacy revenue, we have been weighted down in that. That we are moving away from some of the legacy revenue, which is largely from premium banner ads, now we are moving toward global and video and we can see a path that will have growth in it. And is valued more by the market. Charlie with the growth be easier if you had inherited a better situation and you come our focus on it at the beginning . Marissa i think that overall, we have focused the proper amount. You need to make an immediate decision when you come, you try to build the revenue back up, but that was impossible for us. You try to offset the declining revenue, or do you take that out . I would argue that our revenue were large enough, the services were large enough, that we cannot walk away. We needed to stabilize the core business while we added new businesses. And we needed to get those growing really fast and get them to a skill that matters on a 5 billion base of revenue. And we have come so far in that. Our mobile video, the revenue being about a third of the total revenue, essentially from zero. So you know, the issue is, our legacy businesses have been declining quickly, despite our best stabilization. If we do not try to stabilize them, it could have been worse. A half been moving about 1 billion a year, in terms of legacy revenue. A lot of people said i have talked about this like tectonic plate shifting, because if you look at revenue, it has been flat and a stable, but the composition of the revenue is different. You have huge amount of legacy revenue falling away and new revenue coming in in terms of mobile, in particular. Charlie i hear you saying at the end of the day, you talk about plans, how it is going to work, but i hear you say that in terms of your tenure there as ceo, i have done what i had to do because of the legacy business, and needed to stabilize them. It is not like im either on decisions, i made the wrong decisions, and had to make the decisions because of the Company State it was in. Marissa i think a lot of this comes down to timing and expectations. Certainly, the path of success is never linear. I do think that overall, we have done what we needed to do. We have done really well and some things better than we could do. If you look at the mobile growth, that is way faster than i expected. Absolutely. Things have gotten better. But we are still at that point, and transformation, we have not we have not made or turned yahoo around and got not revenue form from it. Increase inen an users and revenue does follow users, but coming from those Large Revenue assets, they were a benefit because they were so large, but they are it is hard to get that growth quickly. Charlie are you confident that the shareholders will give you the amount of time to make these assets grow . Marissa a lot of this has to do with, how do we find this for the shareholders . Otherverse spin, the alternatives, those are important overall for the company and being able to find the Strategic Moves that would come from either of those and the value that could come from those, is something that can be beneficial. I will make the sacrifice. I will often say, you cannot have everything you want, but you can have the things that matter. I can have my family, yahoo , and do a good job at both. Admittedly, there may not be time for anything else, but this is how i have approached it. There are some women who want to work, some women who do not want to work. Those are both valuable choices. You need to make the choice that will work for you and your family and situation and circumstance. Charlie he made the choices that were right for me. Marissa yes. Everybody at yahoo took at least a month off, in fact, most took four months off that we offer as part of our Maternity Leave policy. Asked, was i setting a bad example, by taking a short leave . I needed to take a short leave. I may have cut off time with my daughter and son, by encouraging people to take their time off. Charlie did they say that you are crazy . Marissa probably. Again, everybody does it in their own way. I came back to work really quickly, but i also made a lot of time to spend with my children, you know, in the same context of being back at work. So, you can have a lot of time with the children, while you also find down time, nap times, different moments in the day. Yes. Charlie finally, there is a question in Silicon Valley, you have often cited as one of the most prominent examples, among others out there, including at Companies Like google is it going to get better . Marissa i think it will get better. Technology, especially the internet, and Computer Science, they are really new. Charlie that is what they loved about you, look, she is it an sher she ends and is an engineer. Marissa yes. Charlie do you still code . Marissa on various side projects. But over all, i think that we need to make, i think we need to make technology and Computer Science really tangible. It shows that the issues, in terms of having enough women in technology, they need to start early, middle school, high school. I think as Technology Becomes more accessible, people are asking, how can i work on that, how can i do that . I am hopeful that that will drive more women into Computer Science. Charlie a long way to go. Finally, i do not talk much about this, but encryption. Or you supportive of that are you supportive of apple . Marissa we are to we do not have we are. We do not support terrorism, but with apples stands revolves around the fact that what they are being asked to do, it could be abused. There is a very gray area in terms of, if that technology, if a backdoor exists, how will it be used and how will we government govern it . Charlie and encryption has gotten better. Marissa yes, and the stance is really on point and it is something that we would support for our users. Charlie it is good to have you. Marissa thank you. Mark im mark halperin. John and im john heilemann. With all due respect to ohio, it is pretty nice to be in florida right now. I am here on the beautiful coast of west palm beach, florida. While mark, my friend, is landlocked, and is having a john kasich town hall. He wants a rock, paper, scissors rematch. The sunshine and buckeye states are two of the five states