With Bartz out, Yahoo must refocus or die
With rivals like Google and Facebook, Yahoo needs to regain footing fast
Computerworld - With Yahoo languishing in the face of competition from the likes of Google and Facebook, the ouster of CEO Carol Bartz gives the company a chance to refocus and reinvigorate itself.
Yahoo announced late on Tuesday that Bartz, who had been with the company for just under three years , had been fired. Tim Morse, Yahoo's chief financial officer, has stepped into the top seat until a permanent CEO can be found.
Under Bartz's stewardship Yahoo has continued to falter. Once an Internet pioneer and online giant, the company has struggled financially. And at a share holder meeting in June, one investor blasted Bartz for the company's limp stock price and her market strategy, and even called for her departure.
During that conference call, Yahoo Chairman Roy Bostock defended Bartz, saying she had made "demonstrable progress" and adding that she had the confidence of the board of directors.
"Sadly, this was not a surprise, as Yahoo! has been languishing for some time, unable to find a sense of focus and direction opposite more energized advertising-based rivals Google and Facebook," said Bradley Shimmin, an analyst with CurrentAnalysis. "In many ways, public companies are like sports teams. When faced with longstanding disappointment, ownership, or the board, takes the most expedient and most affordable action available -- fire the manager/coach, or CEO. In most cases, this single stroke serves as a minor kickstart for the team."
Analysts are split on whether or not Bartz, who was known for her public expletive-filled outbursts, made any major business mistakes.
Shimmin weighs in more on Bartz's side.
"I think Bartz faced a daunting challenge when she took over the reins two and a half years ago, during a time when many advertising companies were just beginning to see positive movement," he noted. "I don't believe she made any major missteps. If anything, I think her conservative approach coupled with Microsoft's failed purchase attempt and subsequent partnership, stalled any potential rebound."
However, Dan Olds, an analyst with The Gabriel Consulting Group, said Bartz may have been leading a troubled company but also added to Yahoo's woes.
- Yahoo can't stall Bing rollout in Taiwan, Hong Kong
- Google keeps Bing, Yahoo at bay in search business
- Google updates Google Now, makes it more prominent on phones
- Yahoo to focus on search -- and Google
- Microsoft's Bing counters Google with Yelp partnership
- Mozilla dumps Yandex as default search for Russian Firefox
- Google aims to make search smarter, easier
- Microsoft Bing goes social in search war with Google
- Facebook tries to out-Google Google with new search tool
- Google, Microsoft each seek search 'game changer'
- Why Projects Fail CIOs are expected to deliver more projects that transform business, and do so on time, on budget and with limited resources.
- The New Business Case for Video Conferencing: 7 Real-World Benefits Beyond Cost-Savings This whitepaper provides insight into the value of video conferencing in today's business environment, and how organizations are using visual collaboration to find...
- Gartner Magic Quadrant for Client Management Tools The client management tool market is maturing and evolving to adapt to consumerization, desktop virtualization, and an ongoing need to improve efficiency.
- Audit Ready and Asset Optimized: The Solid Promise of an Intelligent Software Asset Management Solution In this paper Frost & Sullivan examines the benefits of enterprise-grade Software Asset Management solutions, and how these solutions serve as the convergence...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy... All Internet Search White Papers | Webcasts