Yahoo's CEO Carol Bartz has been fired over the phone by the Chairman of the Board Roy Bostock. The information was given to her when both were on planes headed in different directions. The irony.
Here's a look at email she sent out to all employees where she took a passing shot at the board in her “goodbye” note.
Bartz joined the company 34 months ago with the pledge of turning the company around. However she has been unable to deliver which is clearly evident with the stock price being pretty much the same compared to when she became the CEO. Also having some run-ins with co-founder Jerry Yang, who'd stepped down from the CEO position to make way for her, did not build a strong case for her.
In her reign Yahoo has had a few issues about devising company's objectives clearly. For example they rejected Microsoft's bid at over $30 a share back in 2008. A rather lucrative price that everyone holding the $12.50 shares would have widely accepted today.
Here's the Yahoo! side of the story:
“Yahoo! Announces Leadership Reorganization
SUNNYVALE, Calif., Sep 06, 2011
Yahoo, 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.”
The Future of Yahoo:
What next for Yahoo is anyone's guess as of now. AT&T, News Corp and Verizon have been speculated as the prospective buyers. So the question remains, will Yahoo go private? Or split up? Or will they be able to regain their popularity?