Carol Bartz was fired as CEO of Yahoo! and shares of Yahoo (YHOO) soared 6 percent on the news.
Roy Bostock, Chairman of the Yahoo! Board, said, Carol Bartz, has been removed by the Board from her role as Chief Executive Officer effective immediately and Timothy Morse will be interim Chief Executive Officer.
“I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s Chairman of the Board,” wrote Bartz, 63, in an e-mail to the staff. “It has been my pleasure to work with all of you and I wish you only the best going forward.”
Bartz got the top job despite the fact she knew nothing about the internet business. Everyone was puzzled when she was appointed to the role and everyone in the industry knew it was a disaster waiting to happen. It was going to be a repeat of Terry Semel who too was a complete disaster.
“She didn’t know the business Yahoo was in. She couldn’t articulate a direction because she had no idea what it should be”, said Rob Enderle, of the Enderle Group. Other analysts said it would be a challenge for Yahoo to find a CEO who could accomplish what Bartz did not.
Bartz divested the search business to Microsoft and gutted Yahoo of most of its technology assets. But none of her moves prevented a continuing decline in Yahoo’s core advertising business, and the company’s stock remained flat throughout her tenure.
Yahoo generates most of its revenue from advertising, however it’s share of the U.S. display ad market is expected to fall to 13.1 percent this year from 14.4 percent last year, according to research firm eMarketer. Meanwhile, the overall U.S. display ad market is expected to grow 24.5 percent this year, to $12.33 billion.Channels: carol bartz, Terry Semel, Yahoo