CNBC EXCLUSIVE: CNBC TRANSCRIPT: CAROL BARTZ, YAHOO CEO ON CNBC'S "SQUAWK BOX" TODAY

WHEN: TODAY, THURSDAY, SEPTEMBER 10TH

WHERE: CNBC'S "SQUAWK BOX"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Yahoo CEO Carol Bartz today, Thursday, September 10th on CNBC's "Squawk Box."

All references must be sourced to CNBC.

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KERNEN: OUR NEXT GUEST CREDITED WITH GIVING YAHOO! NEW LIFE, FORTUNE MAGAZINE TAPS HER AS NUMBER EIGHT ON ITS MOST POWERFUL WOMEN'S LIST. JOINING ME NOW IN A "SQUAWK BOX" EXCLUSIVE OUR OLD FRIEND CAROL BARTZ WHO WE KNEW -- WE'VE KNOWN SINCE -- I DO HAVE TO ASK YOU, NOW YAHOO! CEO. AND ITS LIKE WE ARE INVISIBLE

BARTZ: I'VE NEVER BEEN INVITED BACK.

KERNEN: OH THAT'S BS. I HAVE SAID CALL HER IMMEDIATELY WHEN YOU GOT THAT POSITION. IT WOULD HAVE BEEN TOUGH TO GET HOST FOR TWO HOURS WITH ALL THIS GOING ON.

BARTZ: YEAH THAT'S TRUE

KERNEN: MAYBE SOMETIME?

BARTZ: SURE. YOU KNOW I'D LIKE THAT. I'M CALM AND COLLECTED AND NEVER HAVE AN OPINION ON THINGS.

KERNEN: WE LOVE THAT. WHO CAN FORGET THOSE GREAT HAINES BARTZ INTERACTIONS. CLASSIC. ANYWAY GIVE US SELL US ON THIS. I GUESS EVERYONE WANTS TO HEAR ABOUT THE DEAL THAT FINALLY DID WITH BOMBER AND MICROSOFT. SELL US ON THIS AGAIN.

BARTZ: THINK OF IT THIS WAY. WE'RE SIMPLY TAKING THE POWERING SEARCH ENGINE.THINK OF ALMOST LIKE AN INTEL CHIP.WE'RE ADDING THE EXPERIENCE AROUND IT. WE REALLY GOT TO LAY OUR COST OFF AND KEEP 80% OF THE REVENUES. WE'RE STILL IN THE SEARCH BUSINESS. IN FACT, WE ACTUALLY WILL BE COMPETING AGAINST BING WITH OUR TECHNOLOGY ON TOP OF THOSE RESULTS. JUST LIKE HP CAN COMPETE WITH DELL, RENOVO. FRANKLY ADDS REVENUE AND TAKES COST OFF OF OUR P&L AND WE'LL BE A STRONGER BUSINESS. WE CAN FOCUS WHERE WE ADD VALUE AND FOCUS ON THE DISPLAY BUSINESS WHICH IS THE EMOTIONAL PART OF ADVERTISING OF IT'S GREAT FOR YAHOO!. 581 MILLION PEOPLE COME TO YAHOO! EVERY MONTH, MILLION. SO WE WANT TO MAKE IT A GREAT EXPERIENCE FOR THEM. NOT ONLY SEARCH, WHEREBY THE WAY THEY ONLY SPEND 3% OF THEIR TIME ON INTERNET DOING SEARCH. THE OTHER 97 ENTERTAINED, INFORMED, COMMUNICATING WITH FRIENDS.WE KNOW THE SOCIAL STORY. THAT'S WHAT YAHOO! WILL DO BEST.

KERNEN: WHEN YOU HEAR CRITICISM FROM SHAREHOLDERS, EVEN NOT SHAREHOLDERS, WHAT DO YOU ATTRIBUTE IT TO? I GUESS A LOT OF PEOPLE ARE JUST MAD THAT SOME OF THOSE HIGHER BIDS WEREN'T ACCEPTED BY PREVIOUS MANAGEMENT. IS THAT WHAT THEY ARE MAD ABOUT?

BARTZ: I THINK THAT'S TRUE. A LOT WOULD LIKE TO GO BACK TO LA LA A YEAR AND A HALF AGO BEFORE LEHMAN, LIFE WAS EASIER. THEY ARE COMPARNG A DEAL THAT WAS PRE -- THIS CURRENT ECONOMIC CONDITION TO TODAY. YOU CAN'T DO THAT. ANY DEAL YOU PUT TOGETHER A YEARAND A HALF AGO -- BY THE WAY, SHOULD MANAGEMENT HAVE TAKEN THAT?I DON'T KNOW. I WASN'T MANAGEMENT THERE THEN.WHO KNOWS WHAT WAS REAL, WHAT WAS NOT REAL. YOU CAN'T TAKE A DEAL THAT WAS A YEAR AND A HALF OR WHAT YOU SPECULATE WAS A DEAL A YEAR AND A HALF AGO AND COMPARE IT TO A DEAL TODAY.

QUINTANILLA: THAT WAS MY QUESTION. KNOWING WHAT YOU KNOW ABOUT THE COMPANY NOW, CAROL, IF YOU HAD BEEN IN THE CHAIR, WOULD YOU HAVE TAKEN THAT BILL WITH 33 OR 34?

BARTZ: SURE.

KERNEN: WHERE YOU ARE NOW?

BARTZ: YOU THINK IM STUPID, 15, 34, YEAH, I THINK SO.

KERNEN:BUT -- WE WERE HOPING YOU'D START THAT SURE WITH AN EPITHET. NO, NO, NO. MAYBE WHEN YOU GUEST HOST LET ME ASK YOU THIS, THOUGH. FROM HERE ON OUT, YOU'VE GOT TO BE -- YOU'VE GOT TO KNOW CONTENT.IS IT MOSTLY GOING TO HAVE TO BECONTENT BECAUSE EVERYTHING ELSE, THERE'S INNOVATORS EVERYWHERE ELSE AND YOU JUST NEED TO FOCUS ON THAT?

BARTZ: WAIT A MINUTE. INNOVATORS EVERYWHERE ELSE.WE INNOVATE AS WELL.WE STILL MANAGE THE SEARCH RESULTS ON OUR PAGE.WE STILL ADD VALUE TO THOSE SEARCH RESULTS. WE STILL ADD VALUE IN THE VERY COMPLEX SCIENTIFIC INSIGHTS OF DISPLAY ADVERTISING. WHEN YOU TALK ABOUT CONTENT, THIS IS NOT A MINOR ISSUE. WHEN YOU CAN SERVE MILLIONS OF ADS A DAY, WHEN YOU CAN SERVE UP AS MUCH CONTENT AS WE DO IN AS MANY LANGUAGES AROUND THE WORLD THERE'S HUGE TECHNOLOGY AROUND THIS. DON'T JUST TALK ABOUT CONTENT.A LOT OF INNOVATION. THAT WAS A COMPLIMENT, OBVIOUSLY A STRONG TOOL.

KERNEN: WHAT IS GOING TO BE THE NEXT GREAT FRONTIER FOR YAHOO! TO DISTINGUISH ITSELF.IS IT SOMETHING LIKE WHERE DID YOU GO, THE NEXT BIG THING. I'M NO INVOLVED IN ANY OF THIS STUFF. I HAVE NO SOCIAL LIFE. WHAT'S THE NEXT BIG THING?

BARTZ: WELL, YOU KNOW, IN EFFECT, THE NEXT BIG THING IS THAT PEOPLE REALLY NEED A LITTLE MORE ORGANIZATION ON THE INTERNET.YOU KNOW, YOU ARE RUNNING OVER HERE TO TWEET AND YOU'RE RUNNINGOVER HERE TO CHECK ON YOUR FRIENDS AND WHATEVER.WHEN YOU GET UP IN THE MORNING, YOU'VE GOT TO HAVE YOUR LIFE A LITTLE ORGANIZED. WHAT IS THE BREAKING NEWS, WHAT HAPPENED TO MY TEAMS, WHAT IS THE PORTFOLIO. THERE STILL IS THE NEED TO HAVE VERY, VERY GOOD INFORMATION MANAGED FOR PEOPLE.OPEN ACCESS AND JUST, YOU KNOW, TO KNOW WHAT YOUR ONLINE LIFE, WHICH IS BY THE WAY BECOMING A CENTER OF YOUR LIFE, HOW CAN THAT BE ORGANIZED AND WHO DO YOUTRUST TO GIVE YOU THE RIGHT INFORMATION? WHEN YOU HAVE FIVE MINUTES, DO YOU WANT TO PLAY OR BE ENTERTAINED, THE PLANE LANDED ON THE HUDSON, JON AND KATE.

QUICK: HOW DO YOU UPDATE MY YAHOO! IT'S BEEN UP FOR A WHILE AND ORGANIZING STUFF FOR ME. HOW DO YOU TAKE IT TO THE NEXT LEVEL?

BARTZ: YOU KNOW WHAT'S INTERESTING, BECKY, IS ONLY 15% OF THE PEOPLE OPT FOR MY YAHOO! BECAUSE THEY DIDN'T WANT TO WORK HARD TO PUT THEIR PROFILES IN. THE NEW HOME PAGE WE LAUNCHED ACTUALLY HAS A LOT OF FEATURES IN MUCH MORE -- IT ISN'T TO WORK TO OPTIMIZE EXACTLY WHAT YOU WANT TO SEE ON THAT PAGE FROM LOCAL NEWS TO WHERE YOU ARE TO NATIONAL TO FEEDS FROM THE JOURNAL, VIDEOS FROM "SQUAWK BOX," ET CETERA. SO THAT -- WE WANT TO GET PEOPLE THAT DIDN'T WANT TO WORK TOO HARD THAT REAL PERSONAL EXPERIENCE.

QUICK: THE COMPLETE OPPOSITE OF GOOGLE'S TACK, ANNOUNCING ITS UPDATE TO THE HOME PAGE, MAKING THE SEARCH BOX BIGGER AND FUN, THE PRINT INSIDE IT, BUT OTHER THAN THAT IT'S STILL BASICALLY THE SAME HOME PAGE.

BARTZ: I DON'T WAKE UP AND SAY, GOSH, WHAT AM I GOING TO SEARCH? I WAKE UP AND SAY WHAT'S HAPPENING.THAT'S REALLY WHAT YAHOO! IS.WE WANT TO BE THE CENTER OF PEOPLE'S ONLINE LIVES. BY THE WAY 12.7% OF THE PEOPLE GIVE THEIR TIME, MORE TIME ON YAHOO! THAN ANY OTHER SITE ON THE INTERNET. WE JUST HAVEN'T BEEN OUT THERE TALKING ABOUT US. WE'RE, YOU KNOW, WE'RE, YOU KNOW - WE GOT TRAPPEDIN THE MILLIEU OF LAST YEAR AND WE'VE GOT TO COME OUT SWINGING WHICH I THINK I CAN HELP WITH.

GUEST HOST PATTIE SELLERS: CAROL, WHEN YOU CAME IN IN THE BEGINNING OF THIS YEAR, IT WAS A VERY DYSFUNCTIONAL ORGANIZATION THAT HAS NOT BEEN DECISIVE. THE LEADERSHIP HADN'T BEEN VERY DECISIIVE SEEMS TO ME THAT YOU CAME IN AND SAID WE NEED TO DECIDE WHAT WE'RE GOING TO DO AND WHAT WE'RE NOT GOING TO DO. WHAT BESIDES POWERING THE SEARCH IS YAHOO! NOT DOING NOW?

BARTZ: THAT'S A REALLY GOOD QUESTION.I'D SAY THE COMPANY WAS SO INNOVATIVE THAT ANYBODY COULD DO ANYTHING.FOR INSTANCE, WE HAVE LIKE 90 SOME ENTERTAINMENT SITES AROUND THE WORLD.YOU DON'T REALLY NEED 90 SOME ENTERTAINMENT SITES. WE NEED SOME, YOU KNOW, SCALE. SO LISTEN, IF THERE'S A NEW MOVIE COMING OUT THAT YOU NEED THE TRAILERS ON, YOU KNOW, ALL THESE SITES, YOU DON'T NEED EACH SITE TRYING TO ORGANIZE SOMETHING WITH THE MOVIE STUDIOS, SO FORTH. SO JUST A LOT MORE SYSTEMIC APPROACH TO HOW WE DO THIS. SO FRANKLY, SO WE CAN INNOVATE FASTER, I THINK IN THE EARLY DAYS OF THE INTERNET PEOPLE SAID STEP ON THE WALL AND ISN'T IT FUN?BUT THERE'S STILL A LOT OF TECHNOLOGY THAT HAS TO HAPPEN BEHIND ALL OF THIS. AND FRANKLY, IF YOU GET THE BASIS RIGHT, YOU MOVE FASTER. SO REALLY, THE SEARCH DEAL WAS JUST ALLOWED US A LOT MORE FLEXIBILITY, AND YET TO STAY IN THE BUSINESS.

KERNEN: CAROL, WOULD YOU CONSIDER SELLING ANY INVESTMENT STAKES YOU HAVE IN SAY YAHOO JAPAN OR ALIBABA?

BARTZ: THERE ARE TWO DIFFERENT THINGS HERE. YAHOO JAPAN ADDS COMPANY REVENUE TO THE COMPANY.THAT'S NOT AN INVESTMENT.THAT IS A PARTNERSHIP AND THAT ACTUALLY VERY MUCH ADDS TO OUR PROFIT PICTURE. ALIBABA IS AN INVESTMENT. FRANKLY, WHEN I FIRST GOT HERE ITHOUGHT, OH, MY GOSH, WE'RE NOT IN CHINA. EVERYBODY'S GOT TO BE IN CHINA. BUT WE ALL KNOW THAT CHINA IS A TOUGH MARKET TO BE IN, ESPECIALLY MEDIA.AND MY FIRM BELIEF IS THE CHINESE GOVERNMENT IS MUCH MORE INTERESTED IN MEDIA COMPANIES BEING CHINESE MEDIA COMPANIES. SO I VIEW THIS AS A WAY TO PROFIT FROM THE CHINA INTERNET MARKET THROUGH ALIBABA, SO I VIEW IT FRANKLY AS A VERY GOOD INVESTMENT FOR THE FUTURE. WE HAVE NO RUNNING POWER OF ALIBABA. THAT IS, WE HAVE AN INVESTMENT ONLY IN THEM.BUT VERY DIFFERENT FROM JAPAN. I WENT FROM THINKING, OH, MY GOD, NO JAPAN TO SAYING, HEY, YOU KNOW WHAT, WE CAN RISE A A CHINESE INTERNET WITHOUT THE HASSLES OF, YOU KNOW, OPERATING IN THE COUNTRY.

KERNEN: ALL RIGHT.YOU'RE GOING TO BE THERE FOR A WHILE, I GUESS, HUH, AT YAHOO!?YOU SELL SOME STOCK FOR TAX REASONS?ANY OF THESE GUYS --

BARTZ: I DIDN'T SELL ANYTHING, NO, NO, NO.

KERNEN: YOU REACQUIRED IT. RIGHT

BARTZ: YEAH.

KERNEN: YOU DO ANYTHING, YOU'RE GOINGTO SEE FROM SOME SHAREHOLDERS THAT ARE STILL MAD ABOUT JERRY YANG THAT YOU'RE NOT GOING TO STAY. THAT'S PROBABLY PART OF IT. SO YOU'RE LONG HAULER, RIGHT?

BARTZ: YOU KNOW, LISTEN --

KERNEN: YOU LOOK AT ME LIKE YOU USED TO LOOK AT HAINES.YOU'VE GOT THE SAME LOOK YOU USED TO GIVE HIM.

BARTZ: WELL, YOU KNOW, YOU'RE KIND OF TAKING OVER THE YOU KNOW WHAT SPOT.

QUINTANILLA: HE'S BEEN DOING THAT FOR A LONG TIME.

KERNEN: DOES IT BEGIN WITH AN "A"? FORGET IT. ANYWAY, THANKS, CAROL.AND HOPE TO SEE YOU SOON.

BARTZ: I'M AROUND A LONG TIME. I WILL ANSWER YOUR QUESTION. YES, I'M AROUND A LONG TIME.

KERNEN: THEN YOU'RE GOING TO HAVE TO SIT HERE OR SOMEWHERE ON THE SETWHEN YOU'RE BACK HERE.

BARTZ: I WILL.

KERNEN: OKAY, GOOD. THANK YOU.

BARTZ: THANK YOU.

QUINTANILLA: WANT TO PICK A DATE RIGHT NOW? YOU'RE SO GOOD AT BOOKING ON THE AIR.

KERNEN: I HAVE TO.THEN HOW DO THEY SAY NO TO THE BOOKERS WHEN THEY CALL. THEN WE WILL PLAY THE TAPE


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