Yahoo Executive Shake-Up: CEO Carol Bartz Abruptly Ousted

  • A study of Yahoo’s assets and performance conducted in the past two weeks has led independent directors to conclude a management change was needed. As a result, Carol Bartz, Yahoo’s CEO, was fired and will be replaced on an interim basis by the company’s CFO Tim Morse.
  • Yahoo’s interest in bidding for Hulu is expected to continue.
  • The company’s performance has been lackluster and characterized by missteps and high levels of executive turnover under Bartz, resulting in a flat stock price over 2 1/2 years, despite a 60 percent rise in the Nasdaq Composite Index.
  • “The board hasn’t hired an executive-search firm or financial advisers to help in a strategic review, but is expected to do so soon, said someone familiar with the matter,” reports The Wall Street Journal. “The strategic review isn’t expected to include an evaluation of whether Yahoo should be put up for sale, but will focus on so-called ‘organic’ growth, including the possibility of acquisitions or partnerships, the person added.”
  • Bartz wrote a memo to her employees Tuesday afternoon: “I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s Chairman of the Board. It has been my pleasure to work with all of you and I wish you only the best going forward.”