
Yahoo’s summary ouster of CEO Carol Bartz this past Tuesday was quite a surprise in more ways than one. From a big picture perspective though, the news should not really come as a surprise aside from the way in which it was delivered; Ms. Bartz was reportedly notified of her termination via phone call from Chairman Roy Bostock.
It was not long ago we wrote of the Yahoo and Bing search alliance then presided over by the newly minted Bartz, (September 2009 to be exact). Her “vision [was to position Yahoo at] the center of people’s lives online” as well as to better address Google’s increasing search marketshare. Her goal at the time was to shift the company’s focus to their bread and butter, content and display advertising. The company was losing traction and focus even back then, which coincidentally precipitated shareholders’ ugly dismissal of co-founder and former CEO Jerry Yang. Quantcast’s rough estimates show Yahoo traffic nose-diving in July 2010, but flapping and fluttering downward from as early as 2008.
Yahoo was once the big fish in the industry, but has struggled to find its identity the past several years. Is it a technology company, a media property, a search engine, or what? Corporate direction? The answer to this question is always the responsibility of the CEO, and as such the failure to find it incurs the blame. Both Jerry Yang and Carol Bartz are immensely intelligent and talented people, but both seemed unable to find the compass needed to direct Yahoo, and therefore, they failed. Should they really take the blame though?
It certainly can be no consolation for shareholders to see existing CFO, Timothy Morse, assume the position of interim chief executive (not to take anything away from the man himself). He will reportedly lead a team of 5 senior executives in the management of the company. Yahoo is also considering a possible divestment of Asian holdings to right the ship.






