It did not start out too well for AOL CEO and Chairman Tim Armstrong, with a poll on the screen showing most of the attendees in the ballroom at Fortune Brainstorm Tech voting that the Time Warner (TWX) online unit was either out of juice or irrelevant.

The event, which is taking place over three days in Pasadena, Calif., is packed full of Web and media luminaries, so BoomTown will be sitting in the front row and liveblogging some of the sessions here, such as this one that I did for the session with Bob Iger, CEO of the Walt Disney Company (DIS).

Armstrong did not break any news in the interview with Fortune’s lively interviewer, David Kirkpatrick, relying more on projecting an I’m-in-charge-here attitude and saying confident things like “a challenge is also an opportunity.”

In general, Armstrong tried to be upbeat about the prospects for AOL, which has for too long been the Web’s sad sack of an Internet company.

“We are still in a very large trade wind,” he said, referring to advertisers spending money online. “If someone asked you if advertising [online] is going to go up, I think you would have to say yes.”

To take advantage of that, Armstrong said AOL would be focused on investing “in content systems that connect with advertising systems–that’s a white space we are going after.”

He noted that AOL needs to have the same “plumbing approach” to content that Google (GOOG)–where Armstrong had been a major advertising exec before taking his new job–has had to search advertising.

“You have to take the Silicon Valley approach to content,” Armstrong declared.

Armstrong also talked a little bit about his recent 100-day trip around the AOL empire worldwide and what he got out of it.

“I got a lot of advice from different people about what to do,” he said.

His takeaway, which he will discuss at an all-hands meeting scheduled for tomorrow with AOL staff: “It’s really about strategy. If we don’t have the right strategy, we’re not going to win.”

Which is kind of stating the obvious, but it sounded good.

Armstrong also touched lightly on the issue of getting rid of various assets AOL has compiled over the last several years, like it pricey purchase of the Bebo social networking site.

But some, as I recently reported–such as the Truveo video search service and the information search company Relegence–are staying.

Armstrong also talked of buying, but judiciously–noting to me later that AOL had 900 possible acquisition deals blocked in its pipeline.

Someone call a plumber stat!

Armstrong said he has put a stop to a lot of those deals, including putting the kibosh on a $400 million check he was supposed to sign right when he got there.

It was, as he told me after his interview, a windfall that supposed to go to a big computer maker for a distribution deal, which he chose to pass on.

“Everything has to make sense from a return-on-investment basis for me,” said Armstrong. “It’s that easy.”

And that hard, although he did move the crowd, which was polled with the same questions about AOL’s chances after Armstrong talked.

He got more people in the audience to vote that AOL would “return to health as a major Internet player,” which is–as legions of the company’s leaders have shown–no easy task.

[Photo credit: Brad Markel for Fortune]

Goodness gracious, make it stop!

You must know by now how much BoomTown loves internal Yahoo (YHOO) memos. But this is getting ridiculous.

It’s been like a flash flood after a long drought at Sunnyvale HQ today, as Yahoo CEO Carol Bartz turns on the fire hose of a whole lot of communicating.

A lot. A real lot.

“I know you guys have reorg fatigue,” wrote Bartz, in the latest email to employees about the management reorganization finally announced this morning.

Also memo fatigue at All Things Digital HQ, if you can believe it.

Okay, I give, Carol! Well, for now, until another juicy internal memo you aren’t handing out freely lands in my inbox, for example, such as one about a search deal with Microsoft (MSFT). I’d like one of those to go, please!

But, in a gesture of a leak-free peace (can the drop-kick bounty be suspended for just today?), I am posting this last memo about the management reorganization from Carol “Chatterbox” Bartz.

(Although, I wish she would stop insulting the press, as she does below again. We are just doing our job–and very accurately, as it turned out–yet the jibes continue. Which is odd, frankly, given that Bartz has had mostly glowing coverage in the media her entire career.)

But Bartz did seem to leave a little mystery in the email still, as if even more rearranging were to come.

Writes Bartz (my bolding):

“As soon as decisions were made, I wanted you to know about them–even if that means we don’t have all the details nailed down yet”.

Wait, are the deets all nailed by Bartz’s productive hammer or aren’t they?

At least, thankfully, the note is capitalized properly, unlike the quaint no-caps stylings of former CEO Jerry Yang.

In any case, if you just can’t get enough, here is Bartz’s reorg blog from this morning and her new management structure memo too.

And here is her entire email on the reorg to employees:

From: Carol Bartz
Reply-To: Carol Bartz
Date: Thu, 26 Feb 2009 09:02:49 -0800
To: “all-worldwide@yahoo-inc.com”
Subject: Our New Organization

Yahoos,

As I’ve gotten to know Yahoo! over the past several weeks, I’ve developed a point of view on how our organization should be structured to set us up for success.

Our goal is simple: to consistently deliver awesome consumer and advertiser experiences, everywhere in the world we do business. Delivering great customer experiences is everyone’s job at Yahoo!–and each part of our organization will have a clear role in making that happen every day.

The timing of this announcement is important. As soon as decisions were made, I wanted you to know about them–even if that means we don’t have all the details nailed down yet. Yes, there’s been a lot of speculation in the media over the past few days…that’s been a little frustrating, but I’m not willing to speak publicly about decisions before they’re final. Today, they are–so I’ll lay out our new organizational structure for you now.

I know you guys have reorg fatigue. Hang in there–our intention is to leave this structure in place for two to four years. We’ll continue to make adjustments as needed, but we expect this core structure to stay put.

The structure outlined below will enable us to make big improvements in our product quality and operational efficiency. Part of that is simplicity–I’m frankly amazed at how complicated some things are here! We’ll have much clearer decision making and accountability. Product and regional teams will share responsibility for revenue targets and expense management, but we’ll have one P&L, for which I’m accountable.

We will also be in a better position to really listen to and understand our customers–both consumers and advertisers. I think we’ve gotten into the habit of focusing internally too much and we sometimes forget who we’re here to serve. You’ll notice that our management structure puts a renewed focus on the customer, with stronger feedback loops across the company…and they all come through me.

Also, as you know, no organizational structure is a substitute for collaboration, communication and trust. We’ll all need to evolve our behavior a bit–as teams and as individuals – to make this structure work the way it’s designed.

So here’s the overview, with the roles that will report directly to me. As you’ll see, some of our leaders are still to be determined. I know you’ll
want more detail than what’s below–you can learn more on Backyard: http://backyard.yahoo.com/ourorg .

Products: We’ve combined Tech and Product groups under one roof, led by Ari Balogh as EVP Products & CTO. Ari’s charter is to deliver global products that enable extraordinary consumer and advertiser experiences. Ari’s direct reports now include one leader for each product group–we’ve taken care of the “two in a box” problem.

One important note: The Connected Life team has been integrated into various parts of the new organization. Our mobile strategy remains a key part of Yahoo!’s focus going forward and all of our product groups will own mobile innovations. After leading Connected Life for four years, Marco Boerries has resigned from the company to spend more time with his family in Europe. We thank Marco for his important contributions at Yahoo!.

Regions: There are now two: North America and International. As I’ve said before, international growth is critical for Yahoo!, which has become too reliant on its U.S. business over the years.

The regions deliver Yahoo!’s products, programming and services to consumers, partners and advertisers in local markets. They will partner closely with the newly formed Regional Solutions & Products group in Ari’s organization to help drive a significant shift in how Yahoo! develops products for different geographies. The goal is to have global platforms on which regional product offerings are based.

The North American region–comprised of the U.S. and Canada–is led by Hilary Schneider. The leader of our International region, to be hired soon, will be responsible for a cohesive Yahoo! global strategy and seizing our international growth opportunities. Until we determine who’ll lead the International region, Rose Tsou (Asia), Rich Riley (Europe) and Keith Nilsson (Emerging Markets) will continue to report to me.

Marketing: Elisa Steele will be joining Yahoo! as our Chief Marketing Officer (CMO), effective March 23. Elisa joins us from NetApp where she was SVP, Corporate Marketing. Previous to NetApp, she held executive positions in marketing at Sun Microsystems. Elisa will oversee our global marketing strategy and provide direction for our marketing function. She’ll bring together the various Yahoo! marketing teams that have been spread across the company. Reporting into Elisa will be Brand Marketing, Audience Marketing, Corporate Communications, Insights, Policy & Privacy, Community Affairs and related central teams. I’m delighted to have Elisa joining the team.

Customer Advocacy: As I said, we can do much better in hearing the voice of the customer across Yahoo!, and incorporating what we hear into all of our work day-to-day. We have opened a search for a leader, who will oversee Customer Care and Ad Operations globally with the goal of improving how we support Yahoo!’s users and advertisers. In the interim, these teams will continue to report to Hilary.

Service Engineering & Operations: This new team is responsible for delivering common technology services at scale, including application management and infrastructure. No matter how cool our products are, the customer’s experience won’t be great unless our applications consistently deliver. Note that we’re bringing Service Engineering together as one group because these engineers bring expertise that is best applied horizontally. Leading this organization is David Dibble, who joined Yahoo! in December. David’s team also will be accountable for delivering more effective corporate IT systems.

Corporate Functions: Blake Jorgensen will be leaving Yahoo! and I am searching for a new CFO. Blake will remain through a transition with his successor, and I want to thank Blake for all of his great contributions to Yahoo! over the past two years. Mike Callahan will continue to lead our Legal team, and David Windley leads our Human Resources function. Joel Jones joins the team as my Chief of Staff.

So that’s the high-level view. These changes are effective immediately, but we’ve got more work to do in filling out the structure of each group. In the short term, this transition will be challenging for many of our people. My executive staff will be working with their organizations as quickly as possible to create further clarity. For example, we’ll need to recast budgets and adjust work areas so we have the right people working side-by-side.

I want to thank all of you who’ve shared your ideas and views with me since I arrived. Several leaders across Yahoo! came together to design this new structure–I’ve been very impressed with their dedication to the right outcomes, particularly how they’ve embraced the need to eliminate the silos that have been a drag on this organization for so long.

I think this organizational structure has the potential to solve many of the issues you’ve helped me better understand. Of course, new issues will emerge. But I know we’ll be aligned and nimble in tackling them together.

This is a tremendous, proud company with a powerful brand, great products and a bright future. Now’s the time to get more focused than ever on delighting our users and advertisers. Let’s show them how great Yahoo! can be.

Carol

Yahoo and Google have agreed to delay their online search advertising partnership to give the Justice Department more time to evaluate the deal.

A Yahoo spokesman confirmed the move in a statement: “The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the Department of Justice. We have had discussions with regulators and look forward to responding to their questions about this agreement.”

A Google spokesman also added: “When we announced our advertising agreement with Yahoo! in June we agreed to delay its implementation until October to give regulators time to look at the details. As we are still in conversation with the Department of Justice we have agreed to a brief delay in implementing the agreement while those discussions continue.”

The delay could impact Yahoo’s share price on Monday, given the deal for Google to serve some of its search ads promised to give Yahoo (YHOO) hundreds of millions of dollars in additional revenue.

Still, the pair had few options of late but to cooperate fully with regulators.

Although Google (GOOG) execs have been especially adamant that the arrangement was going forward no matter what, the delay is now not as surprising, given the increasing opposition to the deal involving the No. 1 and No. 2 online search leaders in recent weeks.

So much so, that, according to several sources with knowledge of the situation, staffers at the Justice Department had recommended to their superiors that the deal be investigated further and even blocked in court.

Top Google execs have been in Washington, D.C. over the last week, seeking to change regulators’ minds, sources said, including offering up more proof that the deal would not result in a Google search ad monopoly and necessarily raise online ad prices.

But the problem has been that more critics have been joining the just-say-no-to-Yahoogle bandwagon–questioning the controversial ad deal for Yahoo to outsource some of its search ads to Google and its aggressive, damn-the-torpedoes approach to pushing the deal forward.

Just a few weeks ago, Google CEO Eric Schmidt told reporters the deal would not be delayed by Justice Department mulling. “Time is money in our business,” he said.

That might be, but time now apparently waits for regulators.

The partnership was set to start up around mid-October and promised to give the much-suffering Yahoo a huge boost in revenues.

Of course, the deal has been much lobbied against aggressively by Microsoft (MSFT), especially since Yahoo used it as a way to escape the software giant’s takeover clutches.

Nonetheless, critics like Microsoft have a lot of ammo, especially because Yahoo and Google together will claim over 80 percent of the search market.

That has caused a big outcry among advertisers and publishers to prevent the top two players from partnering at all.

BoomTown has been one of those objecting to the deal too.

In a post recently, I wrote: “Because while Google displays none of the bullying tactics of Microsoft in its glory days–think of it more like a giant that could accidentally squash all us little people with its big dumb feet–the worries about it amassing too much power are well-founded.”

What’s next is anyone’s guess. Google and Yahoo could agree to certain parameters in the deal, in order to assuage critics, or they could fight any regulatory action.

And, of course, they could abandon the deal, a move that most agree would hurt Yahoo more than Google–whose search market share has been ever-growing, even as Yahoo’s and Microsoft’s has declined.

Please see this disclosure related to me and Google.