It’s a move that’s been a long time coming. As the company has bled market share and lost money, Yahoo has been floundering for awhile. Despite her experience, Yahoo CEO Carol Bartz has done nothing but make the problem worse, and on her watch stock prices have fallen and Yahoo has continued to limp along while competitors top them in their core businesses. Well, it finally happened. Yahoo has fired CEO Carol Bartz; Chief Financial Officer Tim Morse will take over as interim CEO until a replacement can be found.
Increasingly, Carol Bartz has been criticized by Yahoo’s board of directors for some of her moves, and at times she apparently seemed like she didn’t understand Yahoo’s business. For example, she killed Yahoo Personals (rather than selling them off), then spent a fortune to buy Associated Content without any real idea of what to do with it. No wonder she’s out; Yahoo is still looking for ways to grow and expand and change its fortunes, and that means it’s still for sale, Microsoft. Upon the news of Bartz’s ouster, Yahoo’s stock rose 6% to $13.72 in after-hours trading.
Really, this isn’t Bartz’s problem. She’s a victim, not a cause. This company is going down the tubes, and unless they find a real Svengali or stumble upon some game-changing new business, their decline will continue. Yahoo’s juice from the early 00’s is long gone. They’re just another search engine/website now, and their inability to turn their market share into dollars will be their undoing. Yahoo’s much more important as a name than a company now.
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