Carol Bartz was removed from the Chief Executive post by the Yahoo Board of Directors after 2 years of holding it. They have now appointed Timothy Morse for the post until a permanent CEO is appointed.
The news was confirmed after a leaked internal email which Carol sent to all Yahoo employees, stating that she had been ousted -
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.
However, Yahoo confirmed the exit of Bartz in a press release yesterday.
“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,” said Roy Bostock, chairman of Yahoo’s board.
The reason why Yahoo had to sack Carol Bartz was perhaps she lacked experience in advertising and Web 2.0, and wasn’t’ really a “revenue driver”. Now that Tim Morse has been appointed as the CEO (for the time being), analysts say that he would turn out to be “much worse” than Bartz. Both lack the ability to think big and out of the box.
Bartz succeeded Yahoo’s co-founder Jerry Yang as CEO on January 13, 2009, and as a part of the turnaround strategy, amid the tough competition with Google and Facebook, she arbitrarily sacked over a hundred employees and closed some of Yahoo’s less popular services, which could have probably given back a tough competition to its competitors, if improvised appropriately.
Her performance at Yahoo has mostly been effortless. When she was announced as the new CEO of Yahoo in 2009, Yahoo’s stock price closed at $12.41 per share. A year after that, the stock price slightly scaled up to $16.70 (a 32% increase) which was pretty good for Yahoo. However, on the other side, Yahoo’s competitor Google, was almost +100% at the same time. Apple was up by +270%, and Microsoft by +50%. The +32% was good enough for Yahoo, but the performance under her tenure has been lagging.
However, Yahoo’s share in 2011 dipped to 13.1%, while Facebook and Google saw a rise of 17.9 percent and 9.3 percent respectively, and more interestingly, Yahoo’s stock climbed up by 6% (or 81 cents), to $13.72 in the afterhours trading on Tuesday after the removal of Bartz.
What Yahoo! Lost?
Despite all her efforts, Yahoo gained nothing, but mostly lost some of its much neededservices. In the year 2009, during the time of Bartz, most of Yahoo’s services were shut down or sold, and people talked about, ‘Oh, Yahoo is trying to get smaller,’, but Bartz made a statement saying, We were never trying to get smaller. We were just trying to get more focused. You’re just going to see Yahoo bloom more.
Well that really didn’t happen. Under the headship of Bartz, and since she came on board, there were a number of services that were shut down or sold. Few of which are -
One of the biggest mistakes that Yahoo did was to sell Delicious to Avos Systems in April 2011. Delicious stands out as one of the best tools that offers social bookmarking web service for storing, sharing, and discovering web bookmarks. The service claimed more than 5.3 million users and 160 million bookmarked URLs.
Yahoo Geocities, acquired in January 1999, is a web hosting service that is currently available in Japan. Rupert Goodwins, editor of the ZDNet, said the closure of Geocities (in 2009) was the end of an era – “I think Geocities was the first proof that you could have something really popular and still not make any money on the internet.”
Well, Yahoo could have turned Geocities into Facebook, only if they had really “focused” on making things simple and had not closed it down.
Yahoo HotJobs, formerly known as hotjobs.com, was an online job search engine, that provided tools and advice for job seekers, employers, and staffing firm. HotJobs was acquired by Monster.com in 2010, which is the largest job search engine in the world and one of the 20 most visited websites. Do you notice a mistake there, Yahoo?
Yahoo! Go was a Java-based mobile application that bundled most of Yahoo’s services like Yahoo search, news, mail, weather, traffic, and Flickr. In late December 2009, Yahoo announced that Yahoo Go would be discounted, and in January users received the following email from the Yahoo! Mobile team -
Yahoo! Go will be discontinued on January 12, 2010, at 12:00 a.m. PST, so that we may focus on simplifying and enhancing your future mobile Web experiences. After this date, you will no longer be able to use Yahoo! Go 2.0 or 3.0 from your mobile phone.
Other discontinued services -
- Yahoo Tech - March 30, 2009
- Blo.gs – April 2009
- Yahoo! 360 ° – July 13 2009
- Yahoo Gallery – July 14, 2009
- Yahoo Briefcase -March 11, 2010
- Yahoo Buzz – April 21, 2011
Only if Yahoo had retained some of its services, and improvised on it, I’m sure it wouldn’t have had to worry so much today. However, Yahoo currently does own one of the most important and substantial possession, and that is Flickr. If Yahoo plans to at least do a bit of innovation to Flickr, and make it feel more like Flickr-is-not-dead, then I’m sure it would turn out to be one of the best available services in the Internet and perhaps turn it into a stock photography agency as well. But it looks like Yahoo considers it as one of underperformingproducts, and doesn’t give a damn about it, as there haven’t been any major improvements of late.