More trouble for Yahoo! The internet company boots out its boss. But it will struggle to reboot its business
Posted in: Miscellaneous at 11/09/2011 20:36
When Carol Bartz took the wheel at Yahoo! in January 2009 one of her first acts was to tell employees that she would "drop-kick to fucking Mars" anyone who was caught leaking company secrets. Now it is Ms Bartz who has been drop-kicked out of the company. On September 6th news leaked via AllThingsD, a technology-news website, that she had been ousted in a surprise coup by Yahoo!'s board. Official confirmation swiftly followed, with the news that Tim Morse, the firm's chief financial officer, would take over as interim chief executive, supported by a leadership committee of senior managers. In ditching one of Silicon Valley's most colourful characters, whose potty-mouthed epithets have become something of a personal trademark, Yahoo! has signalled the depth of its problems. Fixing them will not be easy.
When the history of the internet industry comes to be written, Yahoo! will deserve a special place in it for all the wrong reasons. Rarely has a company managed to destroy so much shareholder value in so short a time. Before Ms Bartz was brought in to run the business, Yahoo! rejected a bid from Microsoft that valued it at around $45 billion on the ground that the offer was too stingy. Today, its market capitalisation is a mere $17 billion.