Another Yahoo CEO bites the dust. Amid a leadership reorganization at the once-dominant search engine company, Carol Bartz -? the executive charged with turning Yahoo around when she was hired in 2009 ?- has been fired.
Yahoo's board of directors has appointed Timothy Morse, the company's CFO, as interim CEO.
Roy Bostock, chairman of the board at Yahoo, offered a reason for the shakeup: The board sees enormous growth opportunities on which Yahoo can capitalize. Reading between the lines, it's clear the board doesn't feel Bartz was capitalizing on those opportunities.
Bostock said Yahoo's primary objective is to leverage the company's leadership and current business assets and platforms to execute against these opportunities.
"We have talented teams and tremendous resources behind them and intend to return the company to a path of robust growth and industry-leading innovation," Bostock said. "We are committed to exploring and evaluating possibilities and opportunities that will put Yahoo on a trajectory for growth and innovation and deliver value to shareholders."
Strength in Numbers
Beyond the CEO swap, Yahoo's board also named senior execs to a newly formed Executive Leadership Council. The council is charged with supporting Morse in managing the company's day-to-day operations until a permanent CEO is hired, as well as supporting a comprehensive strategic review that the board has initiated to position the company for growth.
"On behalf of the entire Board, I want to thank Carol for her service to Yahoo during a critical time of transition in the company's history, and against a very challenging macro-economic backdrop," Bostock said.
"I would also like to express the board's appreciation to Tim and thank him for accepting this important role. We have great confidence in his abilities and in those of the other executives who have been named to the Executive Leadership Council."
Morse will remain CFO during the hunt for Bartz's replacement. Yahoo said it would retain a nationally recognized executive search firm to identify candidates for the position as quickly as possible.
Yahoo's stock rose 6.3 percent after the news of plans to replace Bartz.
Bartz could not be reached for comment. When she arrived at Yahoo in January 2009, she was the company's third CEO in three years.
Will Yahoo Sell Itself?
Bartz didn't have a strong vision for the company or product vision -- she was doing cost containment but there was no growth, said Greg Sterling, principal analyst at Sterling Market Intelligence.
"Several quarters of weak performance doomed Carol Bartz. She helped clean up some of the mess that was Yahoo before she joined, but she also made some controversial decisions to outsource much of the company's content and, more importantly, to sell its search assets to Microsoft," Sterling said. "That decision has yet to benefit Yahoo, although it benefits Microsoft in several ways."
So what comes next for Yahoo?
"The company may try and sell itself now or go private. But if it does seek out and find a new CEO, that person will need to be extraordinary to return Yahoo to its former glory," Sterling said. "And structurally there's probably no way that Yahoo can return to the once dominant position it occupied before Google entered display and Facebook became what it is."
Source: http://us.rd.yahoo.com/dailynews/rss/internet/*http%3A//news.yahoo.com/s/nf/20110907/tc_nf/80087
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