Breaking: Carol Bartz Was Fired as CEO of Yahoo..!

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Yahoo Press Release:
The text of Yahoo's announcement of a management reorganization that saw Tim Morse replacing Carol Bartz as CEO.
SUNNYVALE, Calif.--(BUSINESS WIRE)-- Yahoo! Inc. (NASDAQ:YHOO - News), the premier digital media company, today announced a leadership reorganization under which the Board of Directors has appointed Timothy Morse interim Chief Executive Officer, effective immediately, replacing Carol Bartz, who has been removed by the Board from her role as Chief Executive Officer.
The Board has also named key senior Yahoo! executives to a newly formed Executive Leadership Council tasked with supporting Morse in managing the Company's day-to-day operations until a permanent chief executive is appointed, as well as supporting a comprehensive strategic review that the Board has initiated to position the Company for future growth.
Roy Bostock, Chairman of the Yahoo! Board, said, "The Board sees enormous growth opportunities on which Yahoo! can capitalize, and our 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. 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."

Bostock continued, "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. 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."
In addition to Morse, who will also continue in his role as Chief Financial Officer of Yahoo!, the Executive Leadership Council will consist of Michael Callahan, Executive Vice President, General Counsel and Secretary; Blake Irving, Executive Vice President and Chief Product Officer; Ross Levinsohn, Executive Vice President, Americas; Rich Riley, Senior Vice President & MD, EMEA Region; and Rose Tsou, Senior Vice President, APAC Region. The Co-founders of Yahoo!, David Filo and Jerry Yang, will each continue as Chief Yahoo and will provide counsel to Tim and the Executive Leadership Council.
"It is an honor to be selected for this role and lead the Company with this world-class team of executives. I look forward to working with the Executive Leadership Council and the talented employees of Yahoo!, and to partnering with the Board to invest in the organization and continue to drive its ongoing growth plans," said Tim Morse, Interim Chief Executive Officer.
The Board is commencing a search for a permanent Chief Executive Officer and expects to engage the services of a nationally recognized executive search firm to help it identify candidates for the position as expeditiously as possible.

Why Was Bartz Fired?

When Bartz first took the job back in January 2009, we were skeptical of the move. Here’s what our Editor-in-Chief Adam Ostrow said at the time:

“First reaction: what exactly does Autodesk have to do with a consumer-focused Internet company like Yahoo? Bartz certainly sounds like she has a long history of running a big company – Autodesk has more than 7,000 employees and $2 billion in annual revenue – but what expertise and vision does she have that’s relevant to one of the world’s biggest Web companies, in desperate need of re-inventing itself?”

His words have turned out to be prophetic. Bartz had no clue how to reinvent a stagnant web company into a digital media powerhouse. Despite all of the tools at her disposal, her legacy will probably be defined by Yahoo’s ridiculous squabble with Alibaba.

Bartz may have been an effective manager, but didn’t have the vision needed to lead Yahoo. What Yahoo needed was a Steve Jobs. Unfortunately co-founder Jerry Yang failed at that task, which led to the hiring of Carol Bartz.

The Alibaba controversey isn’t what did Bartz in, though. It wasn’t her inability to provide direction for the company, either. Ultimately, the reason she is no longer CEO is simple: she failed to create shareholder value.

Yahoo’s share price was $11.59 the day before her appointment. When the markets closed on September 6, the stock was worth $12.74. That is an increase of less than 10%, with most of that value being derived from the skyrocketing value of its China assets. The entity known as Yahoo is worth less today than it was when Bartz took over as CEO.

It doesn’t matter whether you’re the founder or most-seasoned CEO on the planet. If you can’t increase shareholder value, you will not last long as CEO at a publicly traded company. Jerry Yang and Carol Bartz both learned this the hard way.

Bartz’s inability to move Yahoo’s stock price is why she is no longer at the helm of one the Internet’s most important and storied companies. Now it’s up to Jerry Yang and Roy Bostock to find a new CEO who can provide the vision and leadership the struggling company so desperately needs.

Source: Cnet & Mashable

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Amazon should buy both AOL

Amazon should buy both AOL and Yahoo. Yahoo was not consistent to customer who were accustomed to a certain compatibility and level of service. The shopping/wallet system was allowed to deteriorate and customers were no longer able to find the best price because marketers were able to game it. The oldest Geocities customers who tried to stay on found their web sites mangled by an inconsistent upgrade. Real users don't use Microsoft, but silly Icahn did, and he forced Yahoo to turn into a toy for incompetent fools like himself. Yahoo abandined many services precisely as Google was adopting them: for example, they dropped briefcase just when cloud computing came back. AOL was equally foolish with Compuserve, a large data portal for a wide variety of services, such as DIALOG. One could order faxes of journal articles two decades ago. In this fashion Amazon should make jstor.org, lexisnexis.com, ebscohost.com, proquest.com, galegroup.com accessible from Kindle on a per-use basis that may be billed to customer by small users. In fact, it could even offer such services to small colleges in competition with ezproxy.

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