Yahoo Fires CEO Carol Bartz

Embattled Yahoo CEO, Carol Bartz, has been fired from her

position with over a year remaining on her contract.

Calling it a “leadership reorganization” in its official

statement, Yahoo said it was replacing Carol Bartz with Chief Financial Officer, Timothy Morse, who will

act as interim CEO. Morse will be helped out by a newly formed Executive

Leadership Council in the day-to-day running of the business while a permanent

successor is found.

Bartz was informed of the decision over the phone by Yahoo

chairman Roy Bostock, which ended a two-and-a-half-year tenure  marked

by stagnation and in-fighting with its Chinese partner Alibaba.

Carol Bartz fired Yahoo

In May it was

revealed that Alibaba had handed Alipay – one of Alibaba’s crown jewels – to a

company controlled by Alibaba founder Jack Ma, apparently without Yahoo’s – and

Bartz’s – knowledge. In July the company reported falling revenue despite growing profits.

Bartz emailed Yahoo employees to inform them of the

decision, but as is the way with such things, the email was leaked. She said:

“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.”

Carol Bartz fired Yahoo

Bartz was brought in to try and turn around the internet

giant but she failed to make significant ground on Yahoo’s main rivals, Google

and Facebook.

Investors obviously welcomed the news of the firing, as in

after-hours’ trading the company’s shares jumped 6 per cent to $13.72, up

from $12.91 at close. Yahoo’s share price when Bartz joined was $12, a world

away from the share price of $125 at the turn of the century.

In a statement Bostock said: “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.”

Source: Yahoo!

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