Yahoo has been a company without a clear direction for years, though there are many who would argue the point. With the hope of the recently departed CEO, Carol Bartz, who was trying to reorganize the company by getting rid of some services and combining others, she had a task that in reality was not possible to accomplish given falling revenues at the company and past purchases that were now worth less than half of what was paid for them. With her tenure, came a moral problem inside the company with some of the brightest moving on to other companies. That has and will continue to hurt Yahoo.
The problems at Yahoo were there before she arrived and remain since her departure. A recent survey shows employees feel that Senior Management is not effectively running the company. There are many other questions and responses in the survey of Yahoo employees which do not paint a bright future for Yahoo.
Once Carol Bartz was gone and they named Tim Morse, CFO, as the interim CEO for Yahoo until they could find a permanent CEO there was no clear statement as to what Yahoo was going to do. From there, the rumors of Yahoo being for sale where going around for the past few weeks and has been the focus of a lot of speculation of Microsoft making a possible bid for the company. There have a number of other companies rumored to be in discussions with Yahoo and putting together financial packages with investors to purchase the company. Those kinds of discussions do not help when you are trying to turn a company around.
Now we are seeing that Yahoo is actively looking for a CEO and there are several names in the hat for this, most notably, David Kenny, who is a member of the Yahoo Board. He has resigned from Akamai today as President in order to free himself up to be selected as CEO of Yahaoo.
All of this is unsettling for Yahoo and the current indirection that they are going. There have been some good moves, such as eliminating Yahoo search for Bing to treat search as a commodity. But there have been a number of poor decisions for the company. If their intent is to stay the course and turn the company around, they need to come up with a clear cut plan as to how they are going to do that in the face of growing competition. 0