Yahoo CEO Carol Bartz Gets Her Walking Papers
By Allison M. Dickson 2011-09-07 07:29:18
After two and a half years, Yahoo Inc CEO Carol Bartz was invited to step down with another year left on her contract. The decision from the company's independent board of directors came like a bad breakup: via phone call. At least it wasn't a text message, or a buzz from Yahoo Chat.
Reasons for Bartz's termination stem from several missteps, namely her inability to rescue the stumbling internet giant from the shadows of newer and brighter competitors, Google and Facebook, who continue to dominate the internet ad market that Yahoo pretty much owned back in the 90s. Also contributing to her demise was a shoddy handling of the company's dealings with its lucrative Asian assets, Yahoo Japan and Chinese online commerce site, Alibaba. According to the Wall Street Journal, Yahoo's sites saw a thirty-three percent dip in U.S. visitors since Bartz stepped into her post, and in the wake of her departure stock prices have risen over six percent. Ouch.
In the meantime, the company has appointed its Chief Financial Officer Tim Morse to hold the top spot until they can find their fourth CEO in three years. Word also has it they will be bringing in a team of financial consultants to perform a "strategic review," which is not quite on par with the Bobs from Office Space, but close enough. The main goal of the review would be to determine whether Yahoo should more aggressively seek out a buyer, or decide what other companies they can acquire in order to remain somewhat relevant. Their past (failed) attempts at acquisitions have included online coupon giant, Groupon, as well as mega-blog Huffington Post and location-based social media site Foursquare. Currently, they're throwing in a bid to buy up video streaming site Hulu LLC. Despite its sagging revenues and stock prices, the company did turn a billion dollar profit last year and is not exactly hurting for cash. Yahoo hopes with the right leader at the helm, they'll be able to make the most of that money and actually do something innovative for the first time in fifteen years.
Those who are left with any lingering questions as to this troubled company's future can direct them to Yahoo Answers.
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