- Boston-area tornado rips 100 homes: ‘Are we in Kansas?’
- Rush Limbaugh: ‘There is no journalism anymore’
- Scott Brown struggles for political traction in New Hampshire Senate race
- California’s Jerry Brown cites God, ‘religious call’ to embrace illegals
- Hamid Karzai’s cousin killed by suicide bomber at Eid al-Fitr party
- Obama thanks Muslims for ‘building the very fabric of our nation’
- Israel flattens home of top Hamas leader, takes out power plant
- Texas man arrested for powder-letter hoax
- Islamic State opens ‘marriage bureau’ for single jihadists
- Drone almost blocks California firefighting planes
Yahoo’s stock rises after Bartz fired as CEO
Question of the Day
SAN FRANCISCO (AP) - Yahoo’s stock rose nearly 5 percent on Wednesday after the company fired its CEO following more than 2 1/2 years of financial lethargy.
Tuesday’s ouster came as investors were convinced that Carol Bartz couldn’t steer the Internet company to a long-promised turnaround.
To fill the void, Yahoo’s board named Tim Morse, its chief financial officer, as interim CEO. Bartz, who became CEO in 2009, lured Morse away from computer chip maker Altera Corp. two years ago to help her cuts costs. Yahoo said it is looking for a permanent replacement.
Yahoo Chairman Roy Bostock, also a target of shareholder frustration, informed Bartz about the move over the phone, according to an e-mail the outgoing CEO sent from her iPad that was obtained by the All Things D technology blog. The blog first reported Bartz’s ouster.
Yahoo didn’t return requests for comment Tuesday and Wednesday.
Bartz’s rude dismissal “made you feel a little bit like you were watching some reality TV show,” Forrester Research analyst Shar VanBoskirk said Wednesday.
In a research note late Tuesday, Schachter predicted there will be a wide range of conjecture about Yahoo’s future, with the most likely speculation centering on Yahoo as a takeover target during a vulnerable time.
Alternatively, Yahoo could make a bold move itself by trying to buy the online video site Hulu.com, which is already talking to suitors, or trying to sell its 43 percent stake in the Alibaba Group, one of China’s most prized Internet companies. Bartz’s tense relationship with Alibaba CEO Jack Ma had fed investor dissatisfaction about her leadership.
Youssef Squali at Jefferies & Co. said that the Internet company’s challenges, and the fact that Bartz was Yahoo’s third CEO in four years, will make it tough for the board to find an “A player” for the job.
“In all, we believe that it is more likely that the board reaches an agreement to sell the company or parts of the company before a new CEO is found,” Squali wrote Wednesday.
In a statement Tuesday, Yahoo said it is undergoing a “comprehensive strategic review” in its latest effort to give investors a reason to buy its stock, but the company didn’t offer details.
The financial funk, along with recent setbacks in Yahoo’s online search partnership with Microsoft Corp. and the Alibaba investment, proved to be Bartz’s downfall. Her ouster comes with 16 months left on a four-year contract that she signed in January 2009.
TWT Video Picks
- Hillary Clinton: Forget Obama, George W. Bush made her 'proud to be an American'
- Border surge puts Obama legacy on immigration at stake
- White House says Russia 'losing' war in Ukraine
- D.C. seeks to stay judge's order allowing gun owners to carry in public
- EPSTEIN: All IRS roads lead to the archivist
- Illegal immigrants demand representation in White House meetings
- PRUDEN: When the hangman botches the job
- Federal appeals court rules against Virginia's gay marriage ban
- KEENE: Thinking outside nanny-state box with Paul Ryan
- Obama thanks Muslims for 'building the very fabric of our nation'
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq