According to sources close to the situation, AOL has been busy selecting the board for the company, which is still set to spin itself off by year’s end–even as it slows down a decision on a new search deal with either current partner Google or a more emboldened Microsoft.

AOL is using Spencer Stuart in the search for directors, led by well-known headhunter Jim Citrin, sources said, and the company has already settled on several outside candidates.

The final board is likely to have about 10 members, and up to a dozen.

At least one of those seats will go to CEO Tim Armstrong, with one or two more claimed by its current corporate owner, Time Warner (TWX).

AOL and Time Warner made their own wish list of potential directors earlier this year, but some people are also lobbying the company to join the board.

BoomTown is working on discovering all those names, but sources added that the candidates being looked at are a mix of personalities culled from the media, advertising and Web worlds.

Among the key attributes: More presumably fast-forward and innovative Silicon Valley types that can help burnish AOL’s tarnished tech cred.

Here are some of my picks:

Facebook COO Sheryl Sandberg, Guitar Hero CEO Dan Rosensweig, WordPress founder Matt Mullenweg (actually, AOL should buy the start-up), eBay (EBAY) CEO John Donahoe, LinkedIn Chairman Reid Hoffman or CEO Jeff Weiner, Juniper Networks (JNPR) CEO Kevin Johnson, Netflix (NFLX) CEO Reed Hastings, and former AOL iconic exec Ted Leonsis.

And, just for fun, News Corp. (NWS) digital don (and ousted former AOL head) Jon Miller or former Yahoo President Sue Decker.

(I might also add former AOL exec, Netscape co-founder and all-around entrepreneur Marc Andreessen, but if he joins another tech/Web board, he is going to get splinters.)

That’s because Armstrong has set a strategy centered around the turbocharging of online content, powered by a more flexible platform and paid for by goosing AOL’s graphical advertising business.

This puts the online icon–once a powerhouse and now not so much, having operated inside Time Warner since its merger early in this decade–in more serious competition with Yahoo (YHOO).

Yahoo now dominates content on the Web, with powerful news, sports and finance sites, and has recently been trying to reinvigorate its brand. This week, it launched a new marketing campaign with the motto, “It’s Y!ou.”

Yahoo also recently struck a search technology and advertising partnership with Microsoft (MSFT), which has now aimed its efforts at AOL.

According to sources, Microsoft execs have been aggressively courting AOL to switch its search business from Google (GOOG).

The search behemoth has long been AOL’s partner in what sources at both companies said has been a productive and lucrative relationship.

Armstrong is also a former top exec at Google, which many at the company hope will further cement its chances.

And while the renewal of that deal does not officially need to be struck until late next year, sources add that Google has already prepared and offered what it considers an attractive new deal for AOL.

But, much to Google’s chagrin, with a focus on the spinoff and preparations for some more cost-cutting in the months ahead, AOL has decided not to accept it yet and is not likely to anytime soon.

While hedging the situation in a recent video interview with MediaMemo’s Peter Kafka, Armstrong has also recently met with Microsoft execs, sources said, who have discussed a number of partnership options with him, including a tighter relationship with its MSN content properties.

“There’s no need to rush, especially since there is already a lot on AOL’s plate,” said one source close to the situation. “And, since it has options, AOL is going to take time considering them.”

(For more on Armstrong’s thinking, here’s a link to another video interview I did with Armstrong while both of us were in Germany today, in which he talked about the ad market and AOL’s strategy, but was cagey about being more specific.)

Please see this disclosure related to me and Google.

Brad Garlinghouse’s appointment to a new job at AOL today as its new communications czar is yet another sign of an interesting trend for those keeping score of the comings and goings of top Internet execs.

Garlinghouse came to the Time Warner (TWX) online unit after a year-long break, preceded by six years at Yahoo (YHOO).

As anyone who watches the digital space knows by now, this kind of management musical chairs is common and never-ending.

In fact, borrowing a quote by IAC/InterActiveCorp (IACI) CEO and chairman Barry Diller from an onstage interview I did with him at the sixth D: All Things Digital conference and switching out Hollywood for Silicon Valley: “[It] is a community that’s so inbred, it’s a wonder the children have any teeth.”

But, given all the movement of late, this insider seat-switching seems more frantic than ever, as allegiances shift, competitors become friends and colleagues become rivals faster than you can tweet.

When he left Yahoo last summer, in fact, the digital chatter was that Garlinghouse would take a job either as a venture capitalist (he had been one once) or helming a start-up (that too, at Dialpad.com).

In fact, sources said, Garlinghouse had been considering two mobile gigs, but opted for helping to try to overhaul a troubled Web giant.

Fixing messes was the impetus of Owen Van Natta, who left a top job at social networking giant Facebook in early 2008 and by the end of the year, headed over to run Project Playlist, a controversial online music-sharing service.

But then he had hightailed it by spring to try his hand at reviving MySpace, as its CEO.

His boss, News Corp. (NWS) digital head Jon Miller, did the same, getting the hook (unfairly to my mind) at AOL several years ago and then creating an investment firm with former MySpace head Ross Levinsohn.

The pair considered being part of a bid to oust Yahoo management in 2008.

Miller’s freedom lasted only until he got an offer that he presumably could not refuse from News Corp. head Rupert Murdoch recently. (Full disclosure: News Corp. owns Dow Jones, which owns this site.)

The list goes on, chock full of ex-Yahoos, in fact.

Its one-time COO, Dan Rosensweig, left the company in 2006, for example, and joined the well-known private-equity firm, Quadrangle Group.

But, soon enough, he was scooped up by Activision Blizzard (ATVI) to run its Guitar Hero division.

Yahoo Network head Jeff Weiner also departed from the Internet giant, in mid-2008, for a stint at two VC firms.

He landed at LinkedIn, the business-networking service where he was named CEO in late June.

Greg Coleman ran Yahoo ad sales until mid-2007 before taking a job at AOL earlier this year, which he lost after it got new management soon after.

At Yahoo, Coleman sparked with former advertising sales head Wenda Harris Millard, whom he ousted. She went onto Martha Stewart Living Omnimedia (MSO) and left there this spring for the Media Link consultancy.

Presto! She is now helping MySpace’s Van Natta fix the social networking site’s ad business.

Current Yahoo U.S. advertising head Joanne Bradford actually came from Microsoft last summer, via her own short visit to the troubled ad start-up SpotRunner.

Former Yahoo search techie Qi Lu now runs digital for Microsoft (MSFT), along with a big gang of ex-Yahoo techies he has recruited.

And Scott Moore is even better at the switcheroo. He was at Microsoft running MSN U.S. content, switched to Yahoo as its media poobah, left last year to consider a start-up and then headed back to Microsoft as head of U.S. content this year.

But former Google (GOOG) execs have also been busy shuttling hither and yon, mostly to innovative start-ups.

Of course, many find refuge at Facebook (COO Sheryl Sandberg, PR major domo Elliot Schrage and many more) and Twitter (GC Alexander Macgillivray and COO Dick Costolo).

Recent departures–such as Sukhinder Singh Cassidy, who landed at Accel Partners for now–are also likely to find new homes soon enough.

And, of course, there’s always Garlinghouse’s new boss, former Google ad head Tim Armstrong, who took over at AOL earlier this year.

We’ll skip former Joost CEO and former Cisco (CSCO) exec Mike Volpi (who is now a VC); former Netscape Communications/short-term VC/ex-banker/current-for-now CBS (CBS) digital head Quincy Smith; and Joanna Shields, who has worked at Real Networks (RNWK), Google and Bebo (which was bought by AOL)–for now.

Because, around and around and around it always goes, as you can see in this funny video below, which I posted previously:

[Musical Chair designed by Jacob Mathew.]

Jim Bankoff–the well-regarded former AOL exec who runs an online sports news network called SB Nation–has nabbed $7 million in funding from investors to grow the company, including Comcast Interactive Capital, said sources.

There was also a Securities and Exchange Commission document filed on the transaction today, under the name Sportsblogs Inc., which you can see here.

The SEC filing noted that the money invested was $7.95 million. But sources said that the nearly million-dollar difference is for giving cash to early employees and founders and will not be used to fund SB Nation.

People familiar with the situation said SB Nation’s post-investment valuation, after this second round, will be $30 million and also include previous investors, such as Accel Partners and Allen & Co.

Its first round–which also included several prominent angel investors, such as former AOL exec Ted Leonsis and LinkedIn CEO Jeff Weiner–was $5 million.

SB Nation has used that investment to grow like gangbusters over the last year, especially since Bankoff arrived last fall as its chairman and CEO.

Depending on which survey service you reference, the site has between four and seven million unique visitors a month.

It has done distribution deals with Internet giants like Yahoo (YHOO) to goose that growth.

While it has been around since 2003, founded by DailyKos’s Markos Moulitsas and others, the Washington, D.C.-based start-up has been aiming more at the sweet spot of local sports pages, especially as newspapers have become weaker.

SB Nation also covers national sports, using a community network of blogs, analysis and news.

Comcast Interactive Capital, which is the venture arm of Comcast (CMCSA), will also get a board seat for David Zilberman.

Bankoff (pictured here) was a longtime AOL exec, ultimately in charge of programming and products there. He worked on such products as TMZ.com, Moviefone, MapQuest and Netscape, as well as its AIM and ICQ messaging offerings.

After he left the Time Warner (TWX) online unit, he became a senior adviser to Providence Equity Partners. Bankoff still has that role, but has been working full-time at SB Nation for a year.

In a move that many in the Silicon Valley chattering classes were certainly wondering about, former Yahoo exec Jeff Weiner has been named CEO of LinkedIn, the largest social network focused on professionals.

Weiner (pictured here), 39, who has been the president of the Mountain View, Calif.-based company since late last year, will also join the board of directors.

Current CEO, Chairman and founder Reid Hoffman–whose second title will be slightly changed to executive chairman and who will continue to work on a daily basis at LinkedIn–said the move was not part of the preparations for an initial public offering but because Weiner had already been handling the duties of CEO for some time.

“Jeff has really had our team reporting to him and has been doing a lot of what a CEO does for months now,” said Hoffman. “So, we wanted to project that to the world what was already projected internally.”

Before coming to LinkedIn, Weiner ran the Network division of Yahoo (YHOO), putting him in charge of most of its consumer offerings.

He left the Internet giant a year ago and did a brief stint as an executive-in-residence at two Silicon Valley venture firms–Accel Partners and Greylock Partners–before joining Linked in December.

Weiner listed a number of priorities moving forward, including scaling the network, increasing the user base and engagement, improving user experience and product ease, juicing up search, further expanding internationally and strengthening the platform and third-party developer relationships.

Phew, but he left out improving the food in the cafeteria!

“We have done a lot over the last six months to really grow this professional network,” said Weiner, who noted that the company had beaten its internal projections. “And we are positioned well to reach our full potential.”

For now, to both Weiner and Hoffman, that means growth and further girding the bottom line.

LinkedIn, which said it has 42 million members world-wide, has a more diversified business model than other social-networking sites, with “three lines of revenue, including premium subscriptions, corporate solutions and advertising.”

Hoffman said the company was profitable in 2008 and is expected to be profitable in 2009, although he declined to provide either revenue or profit figures.

One striking figure, of course, is the more than $100 million in funding LinkedIn has gotten since it was founded, which had given it a massive valuation of over $1 billion.

That’s why many have been watching for either an IPO or a sale of LinkedIn. Many possible acquirers have been bandied about in the past, including News Corp. (NWS), which owns Dow Jones, owner of this site.

But Hoffman discounted either path for now.

“We are entirely focused on building the company and not on the run-up you make for a public offering,” he said.

Added Weiner: “We are working on how you build a strong company for the long term.”

Here’s the official press release on the news:

LinkedIn Names Jeff Weiner Chief Executive Officer

Co-founder Reid Hoffman continues as Executive Chairman

Mountain View, CA–June 24, 2009–LinkedIn, the world’s largest professional network, today announced that Jeff Weiner has been named LinkedIn’s chief executive officer and appointed to the board of directors. Reid Hoffman will remain focused on LinkedIn in his day-to-day role as founder and executive chairman.

Since joining LinkedIn as interim president in January 2009, Weiner has overseen all operations and played a defining role in developing and executing the company’s strategy to address the accelerating demand for LinkedIn’s products and services on a global basis. “Working closely with Reid and the team over the past six months exceeded all of my expectations coming into the company,” said Weiner. “I couldn’t be more excited about our progress to date, and the opportunity ahead of us.”

“LinkedIn was founded to harness the power of the internet to create a tool that would help individuals become more effective and successful professionals,” said Reid Hoffman, co-founder and executive chairman, LinkedIn. “Over the past six months, Jeff has done an exceptional job leading the company and I look forward to continuing the work that we have begun together.”

In the past year, LinkedIn has achieved records across virtually all key operating and financial metrics, most recently exceeding 42 million global members. LinkedIn has an established business model with three lines of revenue, including premium subscriptions, corporate solutions and advertising. The company operated profitably in 2008 and is expected to be profitable in 2009. LinkedIn has secured more than $100 million in funding from some of the world’s premiere investors.

Weiner brings more than 14 years of consumer web experience to the position. Prior to joining LinkedIn as interim president, Weiner was executive in residence at Accel Partners and Greylock Partners. He had previously held key leadership roles at Yahoo!, most recently serving as executive vice president of Yahoo!’s Network Division with responsibility for Yahoo!’s consumer web product portfolio, including Yahoo!’s Front Page, Mail, Search and Media products. In addition to LinkedIn, Weiner serves on the boards of DonorsChoose.org and Malaria No More. For more information, please see Jeff Weiner’s LinkedIn profile at: http://www.linkedin.com/in/jeffweiner08.

Another Goog-Bye.

Sukhinder Singh Cassidy (pictured here), president of Google’s Asia-Pacific and Latin American operations, is leaving the search giant and joining Silicon Valley venture firm Accel Partners as a CEO-in-residence.

Singh Cassidy, 39, is one of Google’s more visible execs and also one of its highest-ranking women leaders. She has been at Google (GOOG) since 2003.

Previous to that, she was at Yodlee, an online banking start-up, which was backed by Accel–along with stints at Amazon (AMZN) and OpenTV (OPTV).

She is also the second top Google exec to depart the company recently. Tim Armstrong, president of the Americas and a top advertising SVP, left the company a month ago to become CEO and chairman of Time Warner (TWX) online unit AOL.

While any executive exodus from Google is much noticed, especially in such close proximity, the moves by both are probably not too surprising, given that the powerful company–as it matures–has limited avenues for its typically ambitious managers.

It was well known that Armstrong had long wanted to have the top job at a company and that Singh Cassidy is a longtime entrepreneur with higher goals.

Singh Cassidy said as much in an interview with BoomTown last night.

“I was at the end of my streak [at Google] and ready to take the next step and run or grow my own company,” she said. “It is key for me to be stepping out and spreading my wings now.”

Where Singh Cassidy will fly to next is not determined yet, she said, but it will be in the consumer Internet space, she said, although it could be at a start-up or a more established company.

“I think what I was known for at Google was scaling for growth opportunities and I am interested in finding a company with a lot of momentum and need for scale,” said Singh Cassidy.

(Helloooo, Twitter?!? Here’s a way to get a little bit of Googley management without, you know, actually selling out to Google.)

Google CEO and Chairman Eric Schmidt said in a statement about Singh Cassidy’s departure:

“We are deeply grateful to Sukhinder for all that she has done for Google since she joined in 2003. She’s an ambitious, entrepreneurial executive who has a proven track record of building successful operations–most notably, developing Google’s advertising sales teams across Asia Pacific and Latin America. We wish her only the best as she pursues her passion to lead and run her own company.”

A place like Accel is often the first stop for consumer tech players like Singh Cassidy before heading out to another leadership job in the industry. It has backed companies like Facebook, Glam Media and many others.

Yahoo (YHOO) EVP Jeff Weiner, for example, was an executive-in-residence at both Accel Partners and Greylock Partners when he left the Internet giant last year before taking a job in December as president at business networking start-up LinkedIn, which is a Greylock investment.

Interestingly, the CEO-in-residence title is a unique one at Accel, which typically gives high-level exiting managers like Singh Cassidy that EIR title.

But that’s what Singh Cassidy is clearly aiming for. She said she was still sad to be departing Google, even as she was looking forward to the next chapter of her career.

“I am leaving a tremendous platform…but Google or any big company does not present the opportunities to pursue management prowess that you can only get as a CEO,” said Singh Cassidy. “I hope the next thing I jump into will have that and also be long and enduring.”

Here’s the entire Accel press release on Singh Cassidy:

Accel Partners Adds Google Executive Sukhinder Singh Cassidy as CEO-in-Residence

Sukhinder Singh Cassidy Brings Growth and Early Stage Experience to the Global Firm

PALO ALTO, CA, April 8, 2009–Accel Partners, a leading global venture and growth equity firm funding companies from inception through the growth stage, today announced the addition of Sukhinder Singh Cassidy as CEO-in-Residence. Ms. Singh Cassidy joins Accel from Google where she served most recently as President for Asia-Pacific (APAC) & Latin American Operations. In this role, she was responsible for all of Google’s commercial operations in both regions, and built the company’s presence from inception to its current scale serving users, advertisers and partners across 40 domains and 103 different countries throughout APAC and Latin America.

“Having already worked with the Accel team as a Google executive and an entrepreneur, I know first-hand Accel’s approach to engaging and supporting their companies,” said Ms. Singh Cassidy, Accel Partners. “Accel’s portfolio of category-transforming digital media companies such as AdMob, Etsy, Facebook, Glam Media, Kayak, and others creates a rich set of opportunities for marketplace dialog and new category creation.”

Ms. Singh Cassidy has a long-standing relationship with Accel having co-founded Accel-backed Yodlee, a leader in the internet financial application and online banking space. As CEO-In-Residence, Ms. Singh Cassidy will be evaluating new venture and growth equity opportunities in partnership with Accel in addition to working with companies in Accel’s digital media and advertising portfolio. “Sukhinder’s reputation as an entrepreneurial leader in both startups and Google are well known in the industry,” said Jim Breyer, Partner, Accel Partners. “We’re very pleased to have Sukhinder join the Accel team.”

“Sukhinder is the rare executive who has excelled both at founding internet companies as well as running a multi-billion dollar business within Google,” said Theresia Gouw Ranzetta, Partner, Accel Partners. “Her experience will be a real asset for both Accel’s early stage and growth franchise.”

“Sukhinder is a world-class Internet executive,” said Sheryl Sandberg, COO of Facebook and former Google colleague of Ms. Singh Cassidy. “It will be great to be working together again as part of the Accel family.”

Prior to running Asia Pacific and Latin America, Ms. Singh Cassidy joined Google in 2003 as the first General Manager for Google Local & Maps, helping to launch these innovative new services, then expanding her responsibilities to lead the company’s strategic partnerships for Google Books, Scholar, and Video. From 1999-2003, Ms. Singh Cassidy was Co-founder and Senior Vice President of Business Development for Yodlee.com Inc., a leading solutions provider to the global financial services industry. Ms Singh Cassidy started her Internet career in strategy and business development, working for Amazon.com and interactive TV provider OpenTV. For her work in the Internet industry, Ms. Singh Cassidy has been profiled in numerous publications globally, including Fortune, Business Week, Canada Post, India Today, and the book, Innovation Nation, profiling Canada’s most innovative business leaders.

In addition to Accel’s continued investments in early-stage startups from the Accel X early stage fund, Accel announced its $480 million growth fund in December of 2008. This fund will focus on growth equity opportunities across a broad range of sectors, including: information technology, internet, digital media, mobile, networking, software, and services. As with Accel’s early-stage efforts, Accel Growth Fund will play an active role in helping entrepreneurs and management teams build category-defining, global businesses.

About Accel Partners

Founded in 1983, Accel Partners has a long history of excellence and innovation in the global venture and growth equity business. It is dedicated to partnering with outstanding entrepreneurs and management teams to build world-class companies, from inception through growth. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California; London, UK; and Bangalore, India; as well as in China via the IDG-Accel Partnership.

With over $6 billion under management, Accel has helped entrepreneurs build over 300 successful category-defining companies including: Actuate, Alfresco, AMCC, Arrowpoint, Baidu, BBN, Brightcove, ComScore, Etsy, Facebook, Focus Media, Foundry Networks, Gameforge, Glam Media, Imperva, Infinera, Interwoven, JBoss, Kayak, Macromedia, metroPCS, Mu Sigma, Polycom/PictureTel, Portal Software, QlikTech, Rapt, Real Networks, Redback Networks, Riverbed, Sohu.com, UUNet, Veritas, Walmart.com, Webroot, XenSource, and Zimbra. For more information, visit the Accel Partners web site at www.accel.com.

Please see this disclosure related to me and Google.

Another former Yahoo exec has landed at a Silicon Valley venture firm. This time, well-regarded serial entrepreneur Satish Dharmaraj will become a partner at Redpoint Ventures, according to sources.

The move of Dharmaraj is interesting, given that he is not starting a new company or taking a post as an entrepreneur-in-residence at the venture capital firm, as many operating execs do after leaving a company.

Dharmaraj left Yahoo (YHOO) in late January, as was reported here.

He worked there after one of the companies he founded, open-source email start-up Zimbra, was bought by the Internet giant for $350 million in late 2007.

Zimbra’s technology has been an important part of the effort to turbocharge Yahoo’s powerful communications properties as competitors like Google (GOOG) have become more aggressive.

Sources close to the situation said Dharmaraj would focus on business software, the enterprise arena and infrastructure at Redpoint.

Other former Yahoo execs who have gone to VC firms over the last year in a variety of roles include David Goldberg, Jeff Weiner (who has since become president of LinkedIn) and Andrew Braccia.

Here is a video interview I did with Dhamaraj last year after Yahoo bought Zimbra:

Last week, I went to the 15th Stanford Accel Symposium, hosted by Stanford University’s MediaX and the VC firm Accel Partners.

With the honking big title of “The Delta Conference: The Impact of 2008 Dramatic Events on the World of Digital Media and Technology,” it was not quite that dramatic.

But there were a few nuggets to be found at the event, including a panel on online media with a stellar gang, all talking about microblogging, content and where it is all going in this horrible econalypse.

It was kind of like “The View,” except all guys in khakis and oxford shirts. You know, a typical Silicon Valley gathering.

BoomTown did video interviews with all the panelists about their takeaways from the chat: CBS (CBS) Interactive top terrier Quincy Smith, former Yahoo (YHOO) and now LinkedIn bigwig Jeff Weiner, former Yahoo and now Microsoft (MSFT) bigwig Scott Moore, former exec at Time Warner (TWX) online unit AOL and now entrepreneur Jim Bankoff, and Federated Media head John Battelle.

Here’s the video:

There it was again–like the gnarly ghost of Christmas past–in the Los Angeles Times this week. But this time Lloyd Braun wasn’t going to take it anymore.

The object of his ire was dropped right in the middle of a blog post on how Yahoo was “reversing its Hollywoodification” with–egads–no more reserved parking spaces for top execs at its Santa Monica offices.

The Times said the new rule “signals a stark new era of austerity that overshadows the elimination of the last vestiges of the corporate culture war spurred by the hiring of former Warner Bros. chieftain Terry Semel and ABC’s Braun.”

Knock, knock, L.A. Times! Because that war is actually still raging at Yahoo (YHOO)–although the parking spaces carry little symbolic weight anymore at the company, which has much bigger problems to solve these days.

But even more unusually, the piece also abruptly dropped in old allegations the newspaper had included in a devastating story in November of 2005 by Chris Gaither about Braun and Yahoo’s media push at the time, titled “Can Yahoo Sign on to Hollywood?”

It was noted in the post as an aside:

(Braun also converted a conference room with a patio into his personal office and requested a corporate jet for the Santa Monica office. Oh, and there was the time he reportedly took an umbrella without paying for it from the Yahoo store on a rainy day and then asked the clerk who requested payment: ‘Do you know who I am?’ He later explained that he just wanted to make sure the clerk knew he was good for it. But we digress).”

Digress is right, because it turns out, the bulk of those juicy anecdotes about him in the new blog post and the old story actually don’t check out, after extensive reporting BoomTown had done previously and this week too, talking to a range of key execs at the company at the time.

Thus, when I saw the Times post this week, I contacted Braun (pictured here) and sent him the link. He quickly responded via email:

“I am not an umbrella thief–and I promise I never will be. I never once asked for a corporate jet. I was and continue to be a big fan of Southwest Airlines. And I certainly never engaged in any kind of office construction while at Yahoo.”

Braun–who now runs his own online and traditional media production company called BermanBraun in L.A. with Gail Berman–also said he had immediately asked the Times for a correction of the blog post, as he says he did three years ago when the original story ran.

Times Business editor Sallie Hofmeister, whom I also contacted (but who was not in charge at the time of the 2005 piece), said the Times was looking into the situation and wrote in an email to me:

“The story we published in 2005 was a reflection of the sentiments within Yahoo at the time. We worked very closely with Yahoo on the story, so the company’s top management had every opportunity to challenge our reporting. After the story ran three years ago, neither Yahoo nor Lloyd requested a correction and no correction ran. What you hear from people today probably would be different than what they would have said three years ago. Lloyd is long gone and so are the tensions of entertainment’s invasion at Yahoo. People’s recollections also change. Enemies then are friends today.

“As for blog post, we strive for accuracy and when people in our stories take issue with our coverage, we take them very seriously.”

So do I.

Thus, it is long past time to set the record straight and put to bed a fable of raging Hollywood high-handedness–with too-good-to-be-true-because-they’re-not, clichéd lines like, “Do you know who I am?” and filched umbrellas.

Why bother looking into it at all these years hence? Well, for one, it is just not fair for inaccuracies about Braun to remain, complete with a never-die life on the Web and a nagging perception that he was some digital version of Ari Gold from “Entourage.”

But, more importantly, the struggles at Yahoo back then have everything to do with what is going on now. And that is a company culture at war with itself about what it is and should be.

I have, in fact, been collecting string on Braun’s alleged escapades for years, mostly from Yahoos. I was fascinated since, like a game of telephone gone awry, those who worked with Braun closely and would know, told a different story from some of those in Sunnyvale, who might not.

That did not stop many there from telling various stories about Braun, almost none of which were accurate when I actually followed up.

Because of that, I started to look very closely at Yahoo to figure out why such fallacies went unchecked about him and later, about an ever longer string of departed execs.

But let’s start with what was clearly true in that 2005 piece, which began with another parking kerfuffle and a hissy-fit email from a new Yahoo exec, recruited from Fox, threatening to tow “someone” who parked in his assigned place.

It was a classic opening, trying to show in an anecdote the clash that was going on at Yahoo at the time.

And it was an apt one. There was indeed a lot of resistance to the decision by then-CEO Terry Semel, who was pushing Yahoo as a media company.

To do it, Semel hired Braun–a highly successful Hollywood figure (think being key to initiating and developing “Lost,” “Desperate Housewives” and “Grey’s Anatomy,” and you have a good idea of his stature)–to pull it off at a big new and splashy office complex in Santa Monica.

Thus, the lines were drawn by some at Yahoo HQ, where execs mostly work in cubicles and where a we’re-all-equal ethos prevailed among some of the techie old guard especially, at least in their skewed perceptions of themselves.

(Guess what? They do work in cubicles, but some Yahoos in Sunnyvale are more equal than others.)

Still, back in 2005, it was easy to make an ebullient, brash and sometimes abrasive entertainment exec like Braun into a tidy little caricature and mock the idea of his task.

And who was hired to make new and innovative kinds of online programming hits, much as Braun had on television so well.

There is no doubt there were tensions. The Times story began focusing on the level of distrust, which in my estimation–I also was watching Yahoo closely at the time–was mostly from the tech side and mostly without interface with those in Los Angeles.

But, as Gaither noted correctly:

Yahoo’s ability to blend the cultures, milking each for what it does best, will be key to reaching its ultimate goal: to build on its success as the most visited destination on the Web by leveraging the links between content and the technology used to create and deliver it.”

Unfortunately, the Times story then launched into a series of really broad clichés about Hollywood versus Silicon Valley, using the typical “conspicuously expensive car” in LaLaLand versus the “energy-saving” one in Geekville.

(Again, my experience is that the tech folks always seem to have Porsches too, much as many Hollywood slickies drive Prius hybrids.)

The story went on to talk about the arrival of Semel, whom Gaither reported was seen as not as Hollywood at first as was expected by some wary Yahoos. He then got to Braun, who apparently was.

That’s where the problems come in, first by making it seem as if Braun was responsible for the pricey lease for the new Santa Monica offices at the Colorado Center.

Actually, according to top execs like Dan Rosensweig–Braun’s direct boss–as well as sources close to Semel and many other execs involved, that facility’s planning was directed largely from Sunnyvale, as most such projects are.

Braun did give an interview when the lease was announced, but was in no way the driver of the building’s renovation, which was actually being done by the company Yahoo rented the space from.

Next, came an assertion that the execs in Santa Monica got “Hollywood-style perks,” pointing out that Braun had “converted a conference room with a patio into his personal office. He also reserved a parking space close to the elevators for his car.”

Well, Braun did have a reserved space, which was no real crime to my mind, and which was actually not particularly close to the elevators.

How do I know? I have walked Braun to his car in the parking garage, which is about as nonluxurious as it gets, as opposed to Yahoo HQ, which used valets.

More importantly, Braun converted no office space and was assigned a temporary office elsewhere during the renovation, according to a panoply of execs and workers at Yahoo, such as Rosensweig, Jeff Weiner, Scott Moore and sources close to Semel.

It was a good office–after all, Braun was the boss of the Media Group.

And while both offices did have patios, the large outdoor spaces were also kind of dingy, especially compared to the manicured lawns of Yahoo HQ. And the patios were accessible to many parts of the floors, as I noticed on my many visits.

(As an added note, after the renovations were complete, Braun’s official office was not by any means fancy and was very standard in its drone-like look.)

The worst part was the next line: “Yahoo’s top executives drew the line when Braun asked for a corporate jet,” which was followed by a stunning quote by Semel.

It read:

The reaction was basically, ‘No,’ said Semel, who does not ask Yahoo to foot the bill when he flies to Northern California in his own private plane. ‘A lot of the more traditional media companies are doing their best to scale back on some of the perks and put the investment into the products and the consumers.’”

But, top Yahoo execs have uniformly told me over the years and this week that such a request from Braun never happened.

What was actually occurring, again directed by Yahoo’s Sunnyvale HQ, was an analysis about whether the company should start a charter air shuttle for the many engineers in its Burbank facility, working on its then-Panama search project, and employees at its growing Santa Monica facility.

There could be up to 20 workers going back and forth north daily, and the Southwest Airline bills were getting high.

Thus, a look-see to determine if an L.A.-Sunnyvale shuttle for everyone was needed. But it was conceived as a less-than-high-end plane, essentially a puddle-jumper that left at 7 a.m. and came back at 7 p.m.

Braun thought it was a good idea to examine and told Rosensweig, who was in charge of looking at the charter idea. But Braun was not part of the consideration of it.

Ultimately, Semel nixed the idea as too costly, and Braun did not object.

Why Semel seemed to tell Gaither that is curious. But a person familiar with Semel’s thinking said he was only referring to an company shuttle for everyone and not a corporate jet just for Braun and his minions, as the story opaquely implied.

“The discussions over the charter had nothing to do with Lloyd,” said the person. “And he did not ever ask for a corporate jet ever.”

Rosensweig, Weiner and several other top execs at the highest echelons–many of whom did not get along with Braun–support this version, on the record.

“I never saw anything out of the ordinary or Lloyd playing by Hollywood standards,” said Vince Broady, who worked for Braun, after being brought to Yahoo by Rosensweig. “I mean, Lloyd is a colorful character, which makes people notice him, but the idea that he was more difficult than anyone else was overblown.”

There is no doubt why Braun would attract attention–he is very noticeable and had a long and bruising career in Hollywood, with lots of stories of his dishing it out. He’s a genuine character, indeed, but not really that unusual compared to others in the entertainment sector, except perhaps to some at Yahoo.

Thus, I have no doubt, though, that such a story went around that Braun did desire a jet of his own and that Gaither heard it told, just like this most incredible of anecdotes in the piece.

The infamous umbrella!

Here is what Gaither wrote:

Braun’s long career in Hollywood has led to some awkward moments and misunderstandings inside Yahoo–and provided gossipy fodder for critics eager to cast him as a technically illiterate egomaniac.

According to one widely recounted tale, on a rainy day Braun took an umbrella from the Yahoo merchandise store without paying for it. Then, when asked for payment, he reportedly berated the store clerk, asking, ‘Do you know who I am?’ In fact, Braun’s representatives say, it was an innocent question to ensure that the clerk knew he was good for the money.

A Yahoo spokeswoman said the umbrella ultimately ended up in a pool of umbrellas available to all employees.”

I could not, obviously, find the clerk to whom Braun allegedly said this. But I can say that there are free baskets of umbrellas for staffers all over Yahoo, and top execs like Braun can also buy them at company stores and just use their names as part of an account system.

And while I have no proof, the use of such a clearly hoary Hollywood phrase–“Do you know who I am?”–seems like it was simply made up to me by critics bent on making it a much better story than it was.

To be fair, Gaither does portray it as a “tale” that was circulating around Yahoo. But that probably should have alerted him that it was a very tall one indeed and not very reliable–a kind of digital urban legend rather than an actual event.

That’s why I would not have used it, without a much more explicit explanation that it was more an example of the tensions at Yahoo between the media and tech units than it was reality.

Perhaps worst of all was the impact of the piece, which forever cemented Braun’s reputation as a Hollywood-gone-wild exec.

Most interesting was that, according to both the Times and Yahoo sources, the company complained about the tone of the piece, but never asked for a correction.

Why? Sources familiar with Semel’s thinking said that he and PR execs thought it would cause more attention to focus on Braun, if they contested the piece, and it was better to just let it go.

It was probably a bad decision, given it was in the L.A. Times, which had a lot of credibility.

And, indeed, the high-profile Braun was later slapped silly by Valleywag, as the Times piece kept circulating within Yahoo. By the next year, Braun became one of the gossip blog’s first targets.

Valley–which knows a good character when it sees one and likes to poke and prod many, many such Silicon Valley-linked figures in mocking glee (with varying levels of accuracy)–even had a countdown to when Braun would be fired.

Because of this kind of thing, Braun said he tried to get Gaither to take another look at the stories about him, and met with Times editors to get them to make corrections.

The Times said Braun never formally asked for a correction and instead just complained about the story. To me, that is the same thing, but I am not privy to the Times’s internal corrections process, and Hofmeister declined to elaborate.

In any case, looking back, Braun told me this week the lack of support from Semel and Yahoo to fight the story was hugely disappointing and was the moment he realized he felt he would probably have to leave Yahoo.

Eventually, the feeling was mutual, as tensions escalated even further after the article appeared.

Braun–who had a particularly rocky relationship with Rosensweig, which is now patched up–was eventually pushed out in late 2006, after Yahoo moved away from its media focus to drill down in search.

That turned out to be a bad move, as Yahoo got its head handed to it by Google in search efforts. And it has since seriously been in tailspin in the wake of a series of jarring events.

Those include: the sudden departure of Semel mid-2007; the appointment of Co-Founder Jerry Yang as CEO; a painful public struggle to redefine Yahoo; a botched takeover fight with Microsoft (MSFT); a messy proxy battle with Carl Icahn; a collapsed search partnership with Google (GOOG); a decimated stock price; a scarily declining graphical advertising market; wrenching layoffs; and the stepping down of Yang and the thus-far uncompleted search for a new CEO.

You get the idea.

More importantly, with the cutting off of its more vaunted media aspirations, Yahoo closed the door on possible innovative directions that could have made it more competitive now, as it continues to struggle to define itself.

One of Yahoo’s great strengths–and it still is–has been its content properties, which are the most popular, by and large, on the Web. Instead, stinging from the article and the fallout of it, the company retreated from pushing forward aggressively in media.

Had it not, I can imagine a host of stuff it might have done.

And, ironically, Braun is now working on an online project with Microsoft, a celebrity site that will debut early next year and use a lots of the concepts he worked on at Yahoo.

In the 2005 piece, Gaither quoted Yahoo exec Jeff Weiner as saying, in a Yin-Yang concept: “We’re often asked, “Is Yahoo a media company or a tech company?”

Sadly, that question never got resolved then and still has not today.

It almost makes one nostalgic for stolen umbrellas, controversial parking places, questionable patios and wrangling over corporate jets.

Almost.

Well-known Silicon Valley entrepreneur Reid Hoffman (pictured here) will become CEO of LinkedIn again, taking on the job he had for nearly four years after founding the business networking company in 2003.

Hoffman replaces current CEO Dan Nye, who has resigned and will leave the company in mid-January. He came to LinkedIn almost two years ago and was positioned then as the person who was going to eventually be taking LinkedIn public.

More interesting in the shift is the appointment of former Yahoo exec Jeff Weiner as interim president, overseeing day-to-day operations at LinkedIn.

Weiner has been an executive-in-residence at both Accel Partners and Greylock Partners (a LinkedIn investor) since he left Yahoo earlier this year.

He will remain at those venture firms during the transition, even though he will be working at LinkedIn too. At Yahoo (YHOO), Weiner was EVP of the Network Division, which included all of its consumer-facing units.

In an interview earlier today, Hoffman portrayed the changes as friendly, praising Nye’s efforts as top exec, noting the company’s growth from eight million members to 33 million, reaching profitability, and its $53 million in funding in June at a $1 billion valuation.

But, Hoffman said, “We came to the decision that I needed to be working full time, driving the vision.”

Nye (pictured here) noted the recent hiring of Google (GOOG) exec Dipchand “Deep” Nishar as VP of products, which he spearheaded, was an important moment. Hoffman had been in charge of products.

“I wanted to grow this company into a world-class operation,” he said. “Now, Reid needs no friction, so he can move quickly and do what’s necessary for the next phase.”

Weiner (pictured here) said he was looking forward to getting back into operations, after playing an advisory role recently. “I have been really impressed with the company the leadership team has built,” he said. “I see a lot more potential going forward.”

Although it has raised $100 million in total, LinkedIn has not been immune to the recent economic weakness across Silicon Valley. It recently did some layoffs too, and has been focusing much more on increasing the number of revenue streams it has.

Below is a video interview I did with Weiner in June of 2007, when he was still at Yahoo.

And, below that is another I did with Nye, nine months after he first got to LinkedIn, in which he talks about his plans for the company. (Yes, that is a Hawaiian shirt, and Nye does give Yahoo advice in it.)

Weiner:

Nye:

With so many more ex-Yahoos out there now that the most recent layoffs have taken place, BoomTown put out feelers to a range of them to ask whom they would like to run the company they no longer work for.

After all, who better than to pick a new CEO than an ex?

The response I got was swift and varied wildly, depending on which way the ex-Yahoo felt the company should go, including quite a few who thought Yahoo needed to sell itself off completely.

Some considered Yahoo (YHOO) a media and advertising company, for example, while others thought of it as a more Web tools outfit. Still, others considered it a turnaround situation, requiring a wholly different kind of CEO.

Perhaps therein lies the problem–it is still hard to define precisely what Yahoo is and is not, even for its ex-employees.

In any case, here are some of the best suggestions:

1. The Media Mogul

“I think they need to sell to a media company,” said one ex-Yahoo, who posits the move needs to be drastic enough to truly reset Yahoo.

In this scenario, search gets sold to Microsoft (MSFT) and Yahoo’s online content is combined with media assets of a big entertainment and news conglomerate.

That would make the leader of Yahoo one of the following: Bob Iger of Disney (DIS); Rupert Murdoch/Peter Chernin of News Corp. (NWS); Jeff Zucker of General Electric (GE) unit NBC Universal; or Les Moonves of CBS (CBS). (News Corp. is the owner of this Web site.)

2. The Insider

A lot of votes here for former Yahoo COO Dan Rosensweig and not so many for current President Sue Decker.

Why? Several ex-Yahoos mentioned a need to refocus intently on products and the need for a product-obsessed leader, but one who also knew Yahoo well and could get things moving without needing a lengthy learning curve.

“Since Dan R. left, I think there’s been a definite void (at the senior exec level) on the product/consumer expertise and advocate front,” said another ex-Yahoo.

Other execs mentioned are former Yahoos Jeff Weiner and Jeff Mallett.

But several also pointed to board member John Chapple, who is the one most insiders say they are guessing will be the next CEO, especially since he has been reaching out to Yahoos on many levels and asking questions.

3. The Microsoftie or Googler

The new top name here is obviously recently departed online ad exec Brian McAndrews, former CEO of aQuantive, whom many think would be a strong pick and would focus the company on advertising.

In addition, most of those leaving–including several technical people–all seem to agree that Yahoo needs to get out of the search business, and pronto.

Said one engineer: “I hate to say this, but as good as we can be, we cannot compete in the war that is breaking out between Google and Microsoft. And it will only get uglier.”

Other names mentioned in this category include Yusuf Mehdi and Kevin Johnson of Microsoft, as well as Tim Armstrong of Google (GOOG).

4. The Fixer

While there are a lot of different opinions out there among the ex-Yahoos I spoke to, all agree that the company is in need of a sharp operator and someone who can do what it takes to turn the company around quickly.

That means someone like former Vodafone CEO Arun Sarin, whose name has popped up recently, or even nontechie execs known for operational skills.

“We need a decisive leader, given how slowly it takes for things to change at Yahoo, who has a real sense of urgency from the minute he or she gets the job,” said one ex-employee.

Another former exec described it as a “two-step process.” First, the turnaround CEO needs to come in and reorient, focus, and get the company going in the right direction, then a more product-oriented person can be installed under that CEO later.

5. The Holy Grail-Steve Jobs Option

I think the most interesting idea I got from all the many former Yahoos I spoke to was that Apple (AAPL) CEO Steve Jobs swoop in and buy Yahoo.

When I laughed out loud at this notion at first, the exec insisted that it was a feasible idea, given that Apple was interested in expanding its platform beyond its now-popular devices.

It’s an interesting bit of wishful thinking, of course, to imagine a “great leader” to calmly guide the company back to its roots.

Jobs, in fact, memorably addressed a meeting of Yahoo VPs in the fall of 2007. As I wrote then: “Jobs basic message [to Yahoo]: You have great assets–just like Apple did–and now it is all about execution.”

Yes, that tiny little detail.

6. Raise the Yangtanic

Interestingly, pretty much all the ex-Yahoos I talked to–as angry as some are at him for his tenure as a CEO less successful at execution and the ensuing loss of market value at Yahoo–said they did feel there was a need for Co-Founder Jerry Yang to stay around in a significant way.

“Jerry has been a really bad CEO,” said one former employee. “But he could still be an important leader at Yahoo and give the company the kind of inspiration it so desperately needs.”

Not everyone is on board with that.

“I completely disagree that Jerry should stay around. Jerry is one of the main issues at Yahoo and he and [David] Filo must go, as well as most of the board,” said one former Yahoo. “There needs to be free rein for the new CEO to make changes and that won’t be possible if Jerry is still there. Jerry is a nice guy and his heart is in the right place but he has failed as both board leader and CEO and the company needs to start fresh if it is to have a chance.”

Adds the ex-Yahoo: “Steve Jobs would be great, but I think he is busy.”

Yesterday, BoomTown opined that Microsoft was nearing a decision on who would become the head of its digital efforts.

And, according to several sources and some puzzling by me–if an agreement can be reached–I think that Microsoft (MSFT) CEO Steve Ballmer’s top choice is former Yahoo tech star Qi Lu.

While this is by no means a done deal, Lu is just the kind of top tech exec that Ballmer and Microsoft would warm to over a more media-centric choice like former Yahoo COO Dan Rosensweig or former AOL head Jon Miller.

Lu was EVP of engineering for the Search and Advertising Technology Group at Yahoo (YHOO), where he ran all development initiatives for its search and monetization platforms. He was at Yahoo for a decade.

If Ballmer manages to pull off the hire of Lu–on the heels of already grabbing another top Yahoo search exec, Sean Suchter, which I reported on yesterday–the aggressive exec could almost be bypassing a Yahoo search partnership he has long sought by sucking the talent right out of the place instead.

Ballmer is like Edward in “Twilight,” attracting top-notch search execs to Microsoft’s Redmond HQ, as if they were geek versions of Bella.

Lu would be a different choice for the post than many had expected, with a much more technical background than one in online media or advertising sales.

But since all of Microsoft’s future rests on winning in the search and search advertising space and trying to catch up with its archrival Google (GOOG) from way back in the race, Lu is also well suited for the position.

If Lu takes the job, he will be the boss of three strong digital execs at Microsoft: Satya Nadella, the SVP who heads engineering for Microsoft’s search, portal and advertising platform group; Yusuf Mehdi, whose online services portfolio includes marketing, online audience business development and product management for MSN and the search properties; and Brian McAndrews, the SVP for the advertiser and publisher solutions group.

Lu is known as as solid manager, but he is also called a very nice man and unusually humble for a tech star by many, which could be a good influence on Microsoft.

Before Yahoo, Lu was on the staff of the IBM Almaden Research Center, and worked at both Carnegie Mellon University and Fudan University in China (he also got degrees from both places).

And, in the kind of cred Microsoft likes, Lu holds 20 U.S. patents.

He left Yahoo after becoming dissatisfied with all the turmoil there, quitting in June, without another job lined up.

Since he left Yahoo, there have been rumors that he might be headed to Microsoft, but not in such a prominent job.

There has also been speculation that Lu would take a position at Facebook or even return to China for a tech job.

The well-respected Lu certainly has a multitude of choices, but the chance to lead money-laden Microsoft’s digital efforts–as it suits up for battle with Google–is compelling.

BoomTown has been poking around to try to figure out who Ballmer would choose for the digital head, ever since the man who used to be in charge, Kevin Johnson, quit in July, after the software giant’s takeover bid to buy Yahoo failed.

Several people close to the situation say Microsoft’s Ballmer has been keeping the deliberations close to the vest–perhaps because so many of those he has targeted have declined to consider the job.

But this week, many sources both inside and outside the company have told me that Ballmer is close to announcing his choice.

Annoyingly, one source has decided to play a digital version of “The Da Vinci Code” with me, dribbling out clues–more technical than media, very well liked in Silicon Valley, humble–about the candidate, which he wanted me to solve as if I were Robert Langdon and on the hunt for the progeny of Jesus.

Well, my solution is in: Microsoft’s most promising digital Holy Grail is Lu.

On a related note, bizarrely, the day after this column broke the story about Lu’s leaving Yahoo, I caught him by accident in the background of a video I was doing at a Harvard Business School event honoring Facebook’s Mark Zuckerberg.

You can see him at 4:14 minutes in the video, laughing at me, as I bother Greylock Partners VC David Sze and make a bad pun related to former Yahoo exec Jeff Weiner’s departure from Yahoo.

Here’s that video:

Please see this disclosure related to me and Google.

The departure of Dave Karnstedt, who took over last year when longtime Yahoo ad sales exec Wenda Millard left Yahoo in the first of many controversial partings, has been long rumored internally.

(In fact, I have driven one of Yahoo’s PR people crazy in recent months trying to verify a persistent tip I had been getting that he was headed out the door.)

Karnstedt will be joining Redpoint Ventures, a Silicon Valley venture firm, as an executive-in-residence.

And, in a rejiggering and addition of duties at Yahoo (YHOO), Karnstedt’s job and more is going to Joanne Bradford (pictured here), a longtime and well-known Microsoft (MSFT) exec who decamped from the software giant to helm national ad sales at trendy ad services start-up Spot Runner just six months ago.

There have been rumors swirling that Bradford was unhappy at the smaller company after working at the giant Microsoft.

She was EVP of National Marketing Services, focused on national advertisers, for Spot Runner, joining in a high-profile move in March. Previous to Spot Runner, Bradford was a VP and chief media officer of MSN Media Network, and had worked at BusinessWeek before that.

In any case, the move will be seen as a blow to Spot Runner, which recently did some unusual layoffs, despite receiving a large slug of cash from investors.

(Here is a post and video I did on a recent trip to Spot Runner, including an interview with its CEO Nick Grouf.)

“I am going back to my entrepreneurial, build-something roots,” Bradford told me at the time she joined Spot Runner. “There is such inefficiency in buying and selling of advertising and someone has to solve that, both for big companies and small ones.”

Well, welcome to Yahoo, Joanne, which could use a little efficiency in its buying and selling of ad sales!

Seriously, Bradford will now will take over as SVP of U.S. revenue and market development at Yahoo at a very dicey time.

Besides facing a withering U.S. economy, a weakened stock price after the takeover attempt by Microsoft and ensuing mess related to it, it was revealed that the Justice Department might block the deal Yahoo recently struck to outsource some of its ad sales to Google (GOOG).

Yahoo said that in this newly created role Bradford will oversee sales, market development for advertisers, small business and HotJobs. She will report to Hilary Schneider, EVP of Yahoo’s U.S unit.

Karnstedt, whom I interviewed when he first took over ad sales a little more than a year ago, is leaving to pursue other opportunities.

In Silicon Valley, that means the inevitable stop at a VC firm. Hence, Redpoint!

Interestingly, he joins former Ask.com head Jim Lanzone at Redpoint, while former Yahoo execs Jeff Weiner (Accel Partners and Benchmark Capital) and David Goldberg (Benchmark) also landed cushy EIR gigs after leaving Yahoo.

Karnstedt had been SVP of U.S. sales at Yahoo and had apparently resigned from the company earlier this summer (thanks for not confirming that when I asked so many times, Yahoo!)

With Yahoo seven years, he was charged with the difficult task of integrating Yahoo’s search, display, Blue Lithium and Right Media sales teams.

And while Karnstedt was well liked, many complained that the longtime online ad techie was not enough of a gregarious and schmoozy ad sales exec, with deep relationships on Madison Avenue, as Millard–and Bradford–surely are.

As I wrote in Aug. 2007, after an interview with him at Yahoo’s New York offices:

I made the point to Dave (he is the kind of guy you can call Dave, as you can see pictured here) that an ad guy needs to sell himself, but to no avail, so we press on in text. Nonetheless, let me set the visual scene:

Nicest guy you ever want to meet walks into nondescript room, wearing khaki-oxford-jacket Internet uniform 101. Declares Yahoo is going to kick some advertising butt in the nicest possible way. It is revealed this nice guy has been around the Web block for quite a while. Much chitter-chatter ensues. Cut to my clear-as-Fiji-water observation that nice guy, as nice as he is, has his work cut out for him.”

And now, more than ever in Yahoo’s key ad market, so does Bradford.

The only issue that arose was over the appointment of Ash Patel to head the new Global Products group. His appointment was greeted with internal dissent, but Yahoo CEO Jerry Yang was said to have insisted that Patel remain on as planned.

Last week, I outlined the sweeping internal changes at Yahoo (YHOO), which will again dramatically change the structure of management.

As we wrote, the new Global Products group will be headed by Patel (pictured here), who is currently EVP of Yahoo’s Platforms and Infrastructure division.

Much of the Network division, which until recently was under the leadership of the now departed Jeff Weiner, will move under Patel, including search, mail, instant messenger, front page, platforms and social networking.

All these products are considered “global” properties and products, including divisions run by communications and communities SVP Brad Garlinghouse, former Search SVP Vish Makhijani and Front Door head Tapan Bhat.

While Makhijnai is leaving, Bhat is staying so far and Garlinghouse–despite previous reports of his imminent departure–will likely stay on through the summer.

Sources said the prospect of working for Patel is not a welcome one for some Yahoo execs in the old Network division.

Patel has been at Yahoo since 1996, and some do not think his operational style is dynamic enough and claim his division has had problems shipping products.

In the new organization, Global Partner Solutions EVP Hilary Schneider (pictured here) will get purview over the entire U.S. region.

Schneider will continue to oversee all ad sales and add on the Yahoo Media Group under Scott Moore, who was Weiner’s other direct report.

That shift will bring together Yahoo’s vast content properties, like Yahoo Finance, with ad sales and align them more closely.

The rest of the world will be split up between three other regions: Europe, headed by Toby Coppel; Asia, run by Rose Tsou; and emerging markets, headed by Keith Nilsson.

Patel, Schneider and the others all report to Yahoo President Sue Decker.

The reorg was largely run by Decker (pictured here) and top HR execs. Yang was involved but not very visible in the process to top managers.

And all of this reorg might be moot anyway.

Billionaire activist investor Carl Icahn is still pursuing his proxy fight to remove Yahoo’s board and management, which could come to a head at Yahoo’s annual meeting on Aug. 1.

And investors are pressing Microsoft (MSFT) to make another proposal to run Yahoo’s search ad and search businesses, which could include the software giant buying a significant stake in Yahoo.

While some think Yang will soon hand over the CEO reins to Decker, increasing numbers of insiders and outside investors are pushing for new management at the top, as Yahoo’s shares decline and more and more talent takes flight from the company.

“A fish stinks from the head,” joked one employee. “This reorg is change, but what we might need goes higher than this.”

Oh, Scott! Oh, Tapan! Want an extra office? Perhaps a giant sword?

Of the four powerful direct reports to former Yahoo Network division head Jeff Weiner–Front Door and Network Services’ Tapan Bhat, Brad Garlinghouse, who heads Yahoo’s communications and communities arenas, Media Group head Scott Moore and Yahoo Search’s Vish Makhijani–it seems only two are sticking around for now in the current state of extreme flux at Yahoo (YHOO).

That would be Moore and Bhat, who are being quiet–too quiet–as the new reorg, which we reported on in detail here, chugs into place next week.

It feels like an endless loop of “The Highlander” movie over at Yahoo these days!

The group seemingly collapsed after Weiner’s departure last week in a heap of increasingly messy goodbyes.

Makhijani is out, although it is not entirely clear that Garlinghouse is as yet.

Several sources now tell me he is considering staying around through the summer, rather than leaving in a week.

That is, unless a great opportunity opens up for the man who penned the infamous “Peanut Butter Manifesto,” which started Yahoo off on this journey of painful self-discovery.

Thanks, Brad!

Which leaves us with the fate of Bhat and Moore.

As I wrote, current plans are to fold the highly likable Bhat (pictured here) and his group into a new one called Global Products, which will be run by Ash Patel, currently EVP of Yahoo’s Platforms and Infrastructure division.

Bhat’s properties, like MyYahoo, are considered “global” and will be managed out of Yahoo HQ in Sunnyvale, Calif.

But will he stay?

While Bhat is reportedly unsure about the new structure and is considering his options, most expect him to do so, as there could be considerable upside for him even with Yahoo’s current turmoil.

So too for Moore (pictured here), who runs the Yahoo Media Group, which will be moved under Hilary Schneider, who is currently the Global Partner Solutions EVP.

The new org will bring together Yahoo’s vast content properties, like Yahoo Finance, with ad sales and align them more closely.

Several sources said Moore, a former Microsoft (MSFT) exec, is satisfied about the new arrangement and the prospect of reporting to Schneider.

And if Microsoft does return and try another takeover, he would also likely be set.

But other sources said he also has been scouting out a new start-up venture that could include some significant investors.

Indeed, execs like Moore and Bhat have a truckload of options, in any case.

Why? Because Yahoo’s President Sue Decker, who is helming the reorg, cannot afford to lose more top execs, placing the pair in the catbird seat.

And, with a lot of Web 2.0 companies in need of some experienced execs, familiar with big Internet companies, the sky might be the limit there too.

Company in crisis? Employees morale plummeting? Shareholders in revolt? Stock slumping? Barbarians at the gate?

The perfect time to get out the Rubik’s Cube for yet another Yahoo reorganization!

BoomTown now has the outline of the likely sweeping management changes at Yahoo (YHOO), which we reported on earlier this week here and also here, to be announced next week by the troubled Internet company.

The reorg, which will drastically change the structure of management, explains a lot about the spate of recent departures by top execs at the company.

Let’s just dive in, shall we?

First off, a spanking new Global Products group, which will be headed by Ash Patel (pictured here), who is currently EVP of Yahoo’s Platforms and Infrastructure division.

Much of the Network division, which until recently was under the leadership of the now departed Jeff Weiner, will move under Patel, including search, mail, instant messenger, front page, platforms and social networking.

All these products are considered “global” properties and products and will be managed out of Yahoo HQ in Sunnyvale, Calif.

That means the fiefdoms of communications and communities SVP Brad Garlinghouse, Search SVP Vish Makhijani and Front Door head Tapan Bhat will move into Global Products.

Which would explain why Makhijani is now headed out the door and Garlinghouse is on the fence about his own departure.

Bhat is also reportedly unsure about the new structure and is considering his options.

Unlike Qi Lu, Yahoo’s EVP of Search and Advertising Technology, who is also leaving and is considered a tech rock star at Yahoo, the prospect of working for Patel is not a welcome one for some Yahoo execs in the old Network division.

Patel has been at Yahoo since 1996, which makes him one of the oldest of old guards at the company.

“No one wants to report up through him,” said one Yahoo exec. “He’s a Yahoo lifer and not the kind of dynamic leader we need.”

More welcome–although not by all–is likely to be the move to give Global Partner Solutions EVP Hilary Schneider (pictured here) purview over the entire U.S. region.

She will be Patel’s peer in the new organization and both will report directly to Yahoo President Sue Decker.

Schneider’s arena will include all of ad sales and also the Yahoo Media Group under Scott Moore, who was Weiner’s other direct report.

That shift will bring together Yahoo’s vast content properties, like Yahoo Finance, with ad sales and align them more closely.

In addition, some other consumer-facing products will move to Moore under Schneider.

In the last reorganization, Moore got autos and real estate, as well as all entertainment and sports.

Several sources said Moore, a former Microsoft (MSFT) exec, is satisfied about the new arrangement and the prospect of reporting to Schneider.

But other sources said he also has been scouting out a new start-up venture that could include some significant investors.

In addition, some execs are worried about the likable Schneider’s ability to handle such a large job.

“There is lot on her plate and, while she is good at the business side, she is not a products person,” said one in a common refrain about her.

The rest of the world will be split up between three other regions: Europe, headed by Toby Coppel; Asia, run by Rose Tsou; and emerging markets, headed by Keith Nilsson.

Yahoo’s relatively new CTO Ari Balogh will take over a lot of Lu’s team with various engineering execs under him.

Top managers, most of whom had little input in the reorg, which was run by Decker (pictured here) and top HR execs, are reeling from the changes being presented with what most say is little consultation.

“I am not sure right now, with all this drama and all this tension from Microsoft’s failed takeover and the rest of it, why we have to do this,” said another exec. “This feels crazy.”

Maybe not so much. Yahoo shareholders are becoming restless after Microsoft dropped its $33 a share bid for Yahoo and want some action soon.

And billionaire activist investor Carl Icahn is still pursuing his proxy fight to remove Yahoo’s board and management.

Insiders within Yahoo suspect that top execs want to make changes before the Aug. 1 annual meeting, so they can show momentum.

The question is whether that will include another more significant change–the stepping up to Chairman for Yahoo CEO Jerry Yang and the handing over the CEO reins to Decker.

Many execs said that Yang has been strangely absent from the communications around the reorg, which has been driven largely by Decker.

“Where’s Jerry here? He is like a ghost,” said another exec. “It is nerve-wracking.”