Yahoo’s stock up 5% after firing of CEO

Associated Press

SAN FRANCISCO

Yahoo’s stock rose more than 5 percent Wednesday after the company fired its CEO after more than 21/2 years of financial lethargy.

Tuesday’s ouster came as investors were convinced that Carol Bartz couldn’t steer the Internet company to a long-promised turnaround.

To fill the void, Yahoo’s board named Tim Morse, its chief financial officer, as interim CEO. Bartz, who became CEO in 2009, lured Morse away from computer- chip maker Altera Corp. two years ago to help her cut costs. Yahoo said it is looking for a permanent replacement.

Yahoo Chairman Roy Bostock, also a target of shareholder frustration, informed Bartz about the move over the phone, according to an email the outgoing CEO sent from her iPad that was obtained by the All Things D technology blog. The blog first reported Bartz’s ouster.

Yahoo didn’t return requests for a comment Tuesday and Wednesday.

Bartz’s rude dismissal “made you feel a little bit like you were watching some reality TV show,” Forrester Research analyst Shar VanBoskirk said Wednesday.

Macquarie Securities analyst Ben Schachter said the handling of Bartz’s departure was unseemly and a sign of even more drama to come at Yahoo.

In a research note late Tuesday, Schachter predicted there will be a wide range of conjecture about Yahoo’s future, with the most likely speculation centering on Yahoo as a takeover target during a vulnerable time.

Alternatively, Yahoo could make a bold move itself by trying to buy the online video site Hulu.com, which already is talking to suitors, or trying to sell its 43 percent stake in the Alibaba Group, one of China’s most prized Internet companies. Bartz’s tense relationship with Alibaba CEO Jack Ma had fed investor dissatisfaction about her leadership.