The Wall Street Journal is reporting that Carol Bartz is about to accept Yahoo’s offer to be their new CEO, replacing Jerry Yang after his stint of about a year where Yahoo saw their share price collapse after a rejection of offers from Microsoft that many feel were as much an ego play by Yang than a reasoned business decision.
Bartz has been CEO of Autodesk and it remains somewhat unclear why Yahoo’s board sees Bartz as the best person for the job at this challenging time in Yahoo’s corporate history. One idea bandied about on CNBC right now is that Yahoo’s plans are to sell off their search business to Microsoft and then reinvent themselves as a software company, although I’m skeptical even Yahoo would be so foolish as to think they can monetize software in the current online environment where most software is free.
Yahoo does have huge potential to leverage it’s brilliant Web 2.0 development to date (e.g. Flickr, Open Search APIs, etc), but only if they can find ways to make sure their huge internet footprint stays intact and users start to see and interact with Yahoo advertising. If Bartz can do this Yahoo’s prospects could improve significantly.
Disclosure: Long on YHOO