Fired by phone: Yahoo board sacks CEO in a quick phone call
Published 07/09/2011 | 09:12
Yahoo! chief executive Carol Bartz has been fired by the company's board, ending a rocky two-year run marked by stagnating growth and a bitter rift with Chinese partner Alibaba.
Ms Bartz, in a short note sent to Yahoo employees from her iPad, 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."
She was CEO for nearly three years into a tenure in which the company fell short of the turnaround she was charged with leading.
The company said Ms Bartz will be replaced by chief financial officer Timothy Morse on an interim basis. The company plans to search for a permanent replacement for Ms Bartz.
Ms Bartz, 63, has had a rocky tenure at Yahoo since she was appointed chief executive in January 2009.
Most recently, Yahoo settled a dispute surrounding a Chinese payment service called Alipay in a way that ended up diminishing Yahoo's stake in the company.
Ms Bartz was hired in January 2009 to engineer a turnaround after Yahoo fell further behind internet search leader Google under its two previous chief executives, its co-founder Jerry Yang and former movie studio boss Terry Semel.
Yahoo made more money under Ms Bartz because of layoffs, service closures and other cost-cutting moves since her arrival.
Google, though, has got even stronger in the past two years while Facebook, the owner of the web's most popular hangout, has emerged as a formidable threat that's attracting more of the major marketing campaigns that once went to Yahoo.
The departure was first reported by the Wall Street Journal's All Things D technology blog.
Yahoo shares jumped 74 cents, or 5.7%, to 13.65 US dollars in after-hours trading. That is about 12% higher than they were when Ms Bartz was named chief executive.